State of Alabama
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2010
Front cover: A female monarch butterfly, danaus plexippus. The monarch butterfly was designated as the official
insect of the State of Alabama by the state legislature in 1989.
Comments concerning this report should be addressed to:
Office of the State Comptroller
Financial Reporting Section
RSA Union, Suite 206
Montgomery, AL 36130-2602
Bob Riley
Governor
Kay Ivey Bill Newton
State Treasurer Acting Director of Finance
Prepared by the
Department of Finance, Office of the State Comptroller
Thomas L. White, Jr. • State Comptroller
Samantha Shaw
State Auditor
STATE OF ALABAMA
COMPREHENSIVE
ANNUAL
FINANCIAL REPORT
For the Fiscal Year Ended
September 30, 2010
STATE OF ALABAMA
TABLE OF CONTENTS
(Page 1 of 3)
INTRODUCTORY SECTION
Letter of Transmittal ...................................................................... 2
Certificate of Achievement for Excellence in Financial Reporting for the September 30, 2009 CAFR................... 8
Principal State Officials ..................................................................... 9
Organization Chart.........................................................................10
Independent Auditor's Report..................................................................12
Management's Discussion and Analysis ...........................................................16
FINANCIAL SECTION
Page
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements
Statement of Net Assets ...................................................................30
Statement of Activities ....................................................................32
Fund Financial Statements
Governmental Fund Financial Statements
Balance Sheet – Governmental Funds .........................................................34
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets .....................36
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ....................38
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of
Governmental Funds to the Statement of Activities ..............................................40
Proprietary Fund Financial Statements
Statement of Net Assets – Proprietary Funds ....................................................42
Statement of Revenues, Expenses, and Changes in Net Assets – Proprietary Funds ...........................44
Statement of Cash Flows – Proprietary Funds....................................................46
Fiduciary Fund Financial Statements
Statement of Fiduciary Net Assets – Fiduciary Funds...............................................50
Statement of Changes in Fiduciary Net Assets – Fiduciary Funds .......................................51
Component Unit Financial Statements
Statement of Net Assets – Component Units.....................................................52
Statement of Activities – Component Units .....................................................54
Notes to the Financial Statements ..............................................................56
ii
Page
STATE OF ALABAMA
TABLE OF CONTENTS
(Page 2 of 3)
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule – All Budgeted Funds............................................. 136
Budgetary Comparison Schedule – Budget-to-GAAP Reconciliation .................................... 138
Notes on Budgetary Accounting and Reporting .................................................. 140
State Insurance Fund Ten Year Loss Development Information ....................................... 143
Schedule of Funding Progress for Employees’ Retirement System ...................................... 144
Schedule of Funding Progress for Retired State Employees’ Health Care Trust ............................. 145
Notes to Schedule of Funding Progress for Retired State Employees’ Health Care Trust........................ 146
Information about Infrastructure Assets Reported Using the Modified Approach ............................ 147
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Governmental Funds
Combining Balance Sheet – Nonmajor Governmental Funds by Fund Type ................................ 152
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances – Nonmajor Governmental Funds by Fund Type .......................................... 153
Combining Balance Sheet – Nonmajor Special Revenue Funds ........................................ 156
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances –
Nonmajor Special Revenue Funds .......................................................... 158
Combining Balance Sheet – Other Nonmajor Special Revenue Funds.................................... 160
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Other
Nonmajor Special Revenue Funds.......................................................... 162
Combining Balance Sheet – Nonmajor Debt Service Funds .......................................... 166
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Debt Service Funds...... 168
Combining Balance Sheet – Nonmajor Capital Projects Funds ........................................ 172
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Capital Projects Funds ... 174
Combining Balance Sheet – Nonmajor Permanent Funds ............................................ 178
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Permanent Funds ....... 179
Detail Schedule of Budget and Actual Expenditures –
All Agencies and Appropriations, Non-GAAP, Budget Basis ........................................ 182
Schedule of Revenues by Principal Sources –
Governmental Funds in State Treasury – Cash Basis, Transfers Excluded ................................ 220
Schedule of Revenues by Principal Sources and Distributions of Revenues –
Governmental Funds in State Treasury – Cash Basis, Transfers Excluded ................................ 222
Proprietary Funds
Combining Statement of Net Assets – Nonmajor Enterprise Funds...................................... 226
Combining Statement of Revenues, Expenses, and Changes in Net Assets – Nonmajor Enterprise Funds............. 228
Combining Statement of Cash Flows – Nonmajor Enterprise Funds ..................................... 230
Combining Statement of Net Assets – Internal Service Funds ......................................... 236
Combining Statement of Revenues, Expenses, and Changes in Net Assets – Internal Service Funds ................ 238
Combining Statement of Cash Flows – Internal Service Funds ........................................ 240
Fiduciary Funds
Combining Statement of Plan Net Assets – Pension (and Other Employee Benefit) Trust Funds .................. 246
Combining Statement of Changes in Plan Net Assets – Pension (and Other Employee Benefit) Trust Funds........... 248
Combining Statement of Fiduciary Net Assets – Private-Purpose Trust Funds .............................. 252
Combining Statement of Changes in Fiduciary Net Assets – Private-Purpose Trust Funds ...................... 253
Combining Statement of Fiduciary Assets and Liabilities – Agency Funds ................................ 256
Combining Statement of Changes in Fiduciary Assets and Liabilities – Agency Funds......................... 258
iii
Page
STATE OF ALABAMA
TABLE OF CONTENTS
(Page 3 of 3)
Component Units
Combining Statement of Net Assets – Nonmajor Component Units ..................................... 262
Combining Statement of Activities – Nonmajor Component Units ...................................... 264
Combining Statement of Net Assets – Other Nonmajor Component Units ................................. 266
Combining Statement of Activities – Other Nonmajor Component Units.................................. 268
Supplemental Statements and Schedules
Schedule of Federal Revenues by Agency – All Funds and Component Units Except Higher Education ............. 272
Financial Trends – Net Assets by Component ................................................... 274
Changes in Net Assets ................................................................ 276
Fund Balances of Governmental Funds ...................................................... 280
Changes in Fund Balances of Governmental Funds .............................................. 282
Revenue Capacity – Major Revenue Base: Personal Income by Industry – Last Ten Years...................... 284
Revenue Rates: Individual and Corporate Income Tax Rates – Last Ten Years ............................ 286
Principal Revenue Payers: Individual Income Tax Filers and Liability by Taxable Income – Last Four Years ........ 287
Principal Revenue Payers: Corporate Income Tax Filers and Liability by Taxable Income – Last Four Years ........ 288
Debt Capacity – Ratios of Outstanding Debt – Last Nine Fiscal Years ................................... 290
Ratios of General Bonded Debt Outstanding – Last Nine Fiscal Years.................................. 292
Debt Limitations..................................................................... 292
Pledged Revenue Coverage – Last Seven Fiscal Years ............................................ 294
Demographic and Economic Information – Labor Force Statistics – Last Ten Years .......................... 296
Population/Per Capita Personal Income Statistics – Last Ten Years.................................... 297
Top Ten Employers in Alabama – Last Ten Years ............................................... 298
Operating Information – State Government Employment by Function – Last Nine Years ....................... 300
Indicators of Demand or Level of Service – Last Five Fiscal Years.................................... 302
Indicators of Volume, Usage, and Nature of Capital Assets – Last Seven Fiscal Years ....................... 303
STATISTICAL SECTION
iv
STATE OF ALABAMA
INTRODUCTORY SECTION
1
STATE OF ALABAMA
Department of Finance
Office of the State Comptroller
100 North Union Street, Suite 220
Montgomery, Alabama 36130-2620
Telephone (334) 242-7050 Fax (334) 242-7466
www.comptroller.alabama.gov
Thomas L. White, Jr.
State Comptroller
Janice A. Hamm
Deputy State Comptroller
Robert Bentley
Governor
David A. Perry
Director of Finance
2
March 31, 2011
To the Honorable Governor,
Members of the State Legislature, and
the Citizens of Alabama:
I am pleased to submit to you the Comprehensive Annual Financial Report (CAFR) for the State of Alabama for the year ended
September 30, 2010. I believe the information as presented is accurate in all material respects and complies with Article IV, Section 72
of the Constitution of Alabama of 1901 and Section 41-4-3(4) of the Code of Alabama 1975, as amended. The completeness and
fairness of the presentation, including all disclosures, rests with the State’s management. This report complies with Article V, Section
137 of the Constitution of Alabama of 1901 and Section 36-16-1(6) of the Code of Alabama 1975, as amended, as the financial report
for the State Auditor, State Treasurer, and State Comptroller.
Introduction to the Report
Internal Controls
The internal controls in the State's accounting system have been designed to comply with Alabama statutes requiring the audit of
receipts and receivables; the determination of legality and correctness of each claim and expenditure; and that funds are appropriated,
allotted, and on deposit in the State Treasury before any warrant is issued. The internal controls include manual pre-audit and
automated system edits. As an additional control, the State Auditor's Office is responsible for a post-audit of the accounts and records
of the Department of Finance and the State Treasurer's Office. These internal accounting controls provide reasonable, but not absolute,
assurance regarding the safeguarding of assets against loss or unauthorized disposition and the reliability of the financial records from
which the financial reports are prepared. The concept of reasonable assurance recognizes that the cost of a control should not exceed
the resulting benefits.
Audit
This CAFR has been audited by the Department of Examiners of Public Accounts. The Examiners conducted their audit in accordance
with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in
Government Auditing Standards issued by the Comptroller General of the United States. The Examiners' unqualified opinion appears at
the beginning of the financial section of this report. The State will also undergo an audit of federal programs to conform to the
requirements of the Single Audit Act Amendments of 1996 and the U.S. Office of Management and Budget Circular A-133, Audits of
States, Local Governments, and Non-Profit Organizations. Information relating to the single audit, including the schedule of
expenditures of federal awards, and audit findings and recommendations, is issued in a separate report and will be available at a later
date from the Department of Examiners of Public Accounts.
STATE OF ALABAMA
Management’s Discussion and Analysis
Governmental Accounting Standards Board (GASB) Statement No. 34 requires that management provide a narrative introduction,
overview and analysis to accompany the Basic Financial Statements in the form of Management’s Discussion and Analysis (MD&A).
This letter of transmittal is intended to complement MD&A and should be read in conjunction with it. The MD&A can be found
immediately following the Independent Auditor’s Report. The MD&A provides an overview of the State’s financial activities
addressing both governmental and business-type activities reported in the government-wide financial statements. In addition, the
MD&A focuses on the State’s major funds, such as the General Fund, Education Trust Fund, Alabama Trust Fund, and Unemployment
Compensation Trust Fund.
Profile of the Government
Reporting Entity
This report presents financial information on all of State government as a single reporting entity. While state law allows many state
organizations to operate largely independent of the daily central control and scrutiny of the Department of Finance, State Auditor, and
State Treasurer, this report combines the financial data of all state organizations in order to present a comprehensive picture of state
finances. The numerous departments, agencies, elected officials, boards, commissions, authorities, colleges, universities, and other
organizational units of the State are included in this report in accordance with standards established by the Governmental Accounting
Standards Board. These standards make a distinction between organizations which are considered to be part of the primary government
of the State and those which are component units. A component unit is defined as a legally separate corporate entity for which the State
is considered to be financially accountable. The criteria used to determine financial accountability include the appointment of a majority
of the governing board, the ability of the State to impose its will on the organization, and the potential for the organization to be a
financial benefit or financial burden to the State. The State is also considered financially accountable for any organization having an
independently appointed board if that organization is fiscally dependent on the State. An organization is fiscally dependent if it is
unable to adopt a budget, set rates or charges, or issue bonded debt without the approval of the State. Component units can be reported
as if they are a part of the primary government (“blended presentation”) if they provide services solely to the government, but most of
the State’s component units do not and are therefore presented separately (“discrete presentation”) in these financial statements. The
largest of the blended component units includes the Federal Aid Highway Finance Authority, State Parks Improvement Corporation, and
the Building Renovation Finance Authority. The major discretely presented component units are the Alabama Public School and
College Authority, the Department of Mental Health, the Alabama Housing Finance Authority, the Alabama Water Pollution Control
Authority, The Public Education Employees’ Health Insurance Board, the State Employees’ Health Insurance Board, the University of
Alabama, Auburn University, and the University of South Alabama. Note 1 to the financial statements provides a more complete
description of the State’s reporting entity.
Budgetary Controls
Budgetary control is exercised through the Executive Budget Office of the Department of Finance based on the Appropriation Acts of
the State Legislature. Alabama's annual Appropriation Acts include legally adopted budgets for the General Fund, the Education Trust
Fund, and other budgeted funds. The Appropriation Acts identify the source of funding and the programmatic (functional) areas for
which expenditures are authorized. Both the Constitution of Alabama of 1901 and the statutes require a balanced budget for annual
financial operations. In the event that revenue collections do not meet budget projections, the Governor is required to prorate
appropriations and restrict allotments to prevent an overdraft in any fiscal year for which appropriations are made. Allotments of
appropriations are made quarterly based on plans of operations submitted by the departments and agencies. These appropriations and
allotments are enforced by automated edits that prevent allotments in excess of appropriations and expenditures in excess of allotments.
Encumbrance accounting is utilized as purchase orders are issued to insure that purchase orders plus expenditures do not exceed
allotment balances. Controls are further tightened at fiscal year-end by verifying that the total of purchase orders plus expenditures plus
any obligations (accounts payable) incurred against fiscal year appropriations do not exceed allotments, and remaining allotments do not
exceed cash in the Treasury.
3
STATE OF ALABAMA
Cash Controls
The State's controls on cash are fiscally very conservative. Constitutional Amendment 26 prohibits the State Comptroller from drawing
warrants on the State Treasury unless there is money on hand to cover those warrants. This is more restrictive at the end of the fiscal
year when obligations (encumbrances and accounts payable) cannot exceed the available cash balance (cash less warrants payable). This
control is enforced by automated edits and tends to result in positive fund balances, even when generally accepted accounting principles
(GAAP) basis accruals are made in the financial statements. Compliance with Amendment 26 is demonstrated in the following exhibits
for the General Fund and the Education Trust Fund.
Summary of Receipts, Disbursements, and Cash Balances
General Fund
Last Five Fiscal Years - Cash Basis (Treasury Cash Only)
(Amounts in Thousands)
2010
2009
2008
2007
2006
Beginning Cash Balance, October 1
Receipts
Disbursements
Net Increase (Decrease) in Cash Balance
Ending Cash Balance, September 30
Cash Balance Reserved for Obligations
Unobligated Cash Balance, September 30
$
187,281
1,428,089
1,479,702
(51,613)
$
135,668
40,974
94,694
$
264,727
1,602,572
1,680,018
(77,446)
$
187,281
46,971
140,310
$
286,670
1,814,313
1,836,256
(21,943)
$
264,727
44,424
220,303
$
325,122
1,634,581
1,673,033
(38,452)
$
286,670
46,335
240,335
$
214,652
1,656,451
1,545,981
110,470
$
325,122
60,686
264,436
Summary of Receipts, Disbursements, and Cash Balances
Last Five Fiscal Years - Cash Basis (Treasury Cash Only)
Education Trust Fund
(Amounts in Thousands)
2010
2009
2008
2007
2006
Beginning Cash Balance, October 1
Receipts
Disbursements
Net Increase (Decrease) in Cash Balance
Ending Cash Balance, September 30
Cash Balance Reserved for Obligations
Unobligated Cash Balance, September 30
$
51,280
5,217,470
5,188,218
29,252
$
80,532
68,759
11,773
$
48,003
5,679,120
5,675,843
3,277
51,280
51,280
$
-
$
315,967
6,414,631
6,682,595
(267,964)
48,003
48,003
$
-
$
739,687
5,854,027
6,277,747
(423,720)
$
315,967
35,922
280,045
$
587,114
5,498,362
5,345,789
152,573
$
739,687
44,632
695,055
4
STATE OF ALABAMA
Cash Management
The State Treasurer has the responsibility for the investment of cash balances. In accordance with statutory requirements, treasury cash
may be invested in time deposit open accounts, or demand accounts held in Alabama banks, or repurchase agreements, U.S. Treasury
securities and Agency securities.
The State Treasurer has placed considerable emphasis on cash management. In cooperation with state agencies, the receiving of funds
into the State Treasury is expedited, with all excess funds earning interest. Interest earnings during the 2010 fiscal year were as follows:
Bank Deposits
US Treasury and Agency Securities
Interest income is deposited in the State's General Fund to be appropriated by the State Legislature for government operations. In
addition to the management of the investment of these funds, the State Treasurer initiates investments for several state agencies, with
interest earnings being credited to those agencies.
$ 8.9 million
$ 14.4 million
General Fund and Education Trust Fund Balances
The fund balances for the General Fund and the Education Trust Fund for the last five fiscal years are presented in the following table.
The fiscally conservative nature of Amendment 26 tends to produce positive fund balances every year. However, in 2009 the Education
Trust Fund used the provisions of Amendment 803 to the Constitution of Alabama of 1901 to borrow $437.4 million from the Alabama
Trust Fund in order to avoid deeper cuts from proration. The full amount of the loan remains outstanding in 2010, leaving the Education
Trust Fund with a deficit fund balance the past two years.
FUND BALANCES - GAAP Basis
(Amounts in Millions)
2010
2009
2008
2007
2006
General Fund
Education Trust Fund
$
82.9
(244.5)
$
222.1
(221.5)
$
381.7
186.8
$
404.8
528.4
$
404.7
1,029.5
5
STATE OF ALABAMA
Economic Condition and Outlook
Alabama’s economy exhibited signs of recovery in 2010. This is attributable to gains in exports as well as net positive job creation.
Alabama’s gross domestic product (ALGDP) rose by 2.2 percent. The State’s unemployment was slightly lower than the national
average in contrast to Alabama exceeding the national average in 2009. The average unemployment rate for 2010 was 9.5 percent.
There was a 1.7 percent decline in the State’s tax revenues; however, sales tax receipts have been gradually improving and registered a
0.9 percent increase for the fiscal year ended September 30, 2010. The lower tax revenues resulted in proration in both the General
Fund and the Education Trust Fund budgets.
Alabama lost 86,300 jobs during the 12-month period ending in October 2010. All industries lost jobs except for educational and
healthcare services, leisure and hospitality, and government. Sectors that shed the most jobs during the year include manufacturing,
construction, financial activities, professional and business services, wholesale and retail trade, and information.
Manufacturing sector output rose by 4.2 percent during 2010, with a significant increase of 10.8 percent in motor vehicles and parts.
Other contributors to the increase in the manufacturing sector output include computer and electronic products which grew by 9.5
percent and other transportation equipment by 7.8 percent. The construction sector’s output grew by 2.2 percent in 2010. Several major
commercial projects previously in the pipeline cushioned the slowdown in residential and commercial construction. Wholesale trade and
retail trade outputs rose 1.5 percent and 3.1 percent, respectively, as sales strengthened in the latter part of 2010.
According to data from the U.S. Department of Commerce’s International Trade Administration, the end of the global recession in 2009
contributed to a 27.2 percent jump in Alabama exports to $11.2 billion for the first nine months of 2010 compared to the same period in
2009. Exports to Canada, Alabama’s largest trade partner, slipped from $2.8 billion in 2008 to $2.6 billion in 2009, but were up 34.9
percent for the first three quarters of 2010. Other major export destinations for Alabama products included Germany, Mexico, China,
Japan, the United Kingdom, and Brazil. For the first three quarters of 2010, transportation equipment exports amounted to $3.7 billion,
a 30.4 percent increase from the same period in 2009. Other major exports during the first three quarters of 2010 were chemicals,
minerals and ores, machinery, paper products, primary metals, and computers and electronic products.
Alabama’s economy is expected to improve considerably in 2011 with a 3.5 percent increase in output. Non-agricultural employment
will experience a slight gain of 0.7 percent; however, the unemployment rate will still remain fairly high. Tax revenues are projected to
rise 1.2 percent in fiscal year 2011 if the state continues to improve at the pace expected. Large manufacturing and services employers
will be the major economic drivers in 2011. These include firms in industries such as aerospace and defense (both private and the major
government facilities), automotive, steel, utilities, and the state’s major universities.
Annual Growth of Gross Product
Last Ten Years
Alabama
U.S.
6%
5%
4%
3%
2%
1%
0%
-1%
-2%
-3%
-4%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: Center for Business and Economic Research, University of Alabama
University Outreach, Auburn University Montgomery
6
Annual Growth in Personal Income
Last Ten Years
Alabama
U.S.
10%
8%
6%
4%
2%
0%
-2%
-4%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
STATE OF ALABAMA
Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the State of Alabama for its Comprehensive Annual Financial Report for the fiscal year ended
September 30, 2009. This was the twelfth consecutive year that the State has achieved this prestigious award. In order to be awarded a
Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial
report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current Comprehensive Annual Financial
Report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its
eligibility for another certificate.
Production of this report would not have been possible without the assistance of all state organizations which supplied financial
information vital to the accuracy of this report. As we strive to produce this report in future years and to further enhance its quality, the
continued support and cooperation of all agencies remain essential. I also wish to express my appreciation to the entire staff in the
Division of Control and Accounts, whose daily efforts to improve the accountability of state government make the quality of this report
possible.
Acknowledgements
Respectfully submitted,
7
8
LEGISLATIVE
BRANCH
STATE OF ALABAMA
PRINCIPAL STATE OFFICIALS
September 30, 2010
EXECUTIVE
BRANCH
Bob Riley
Governor
Sue Bell Cobb
JUDICIAL
BRANCH
Chief Justice of the Supreme Court
Justices of the Supreme Court
Glenn Murdock
Patricia M. Smith
Michael F. Bolin
Champ Lyons, Jr.
Greg Shaw
Lyn Stuart
Thomas A. Woodall
Tom Parker
Jim Folsom, Jr.
Lt. Governor
Kay Ivey
State Treasurer
Beth Chapman
Secretary of State
Ron Sparks
Commissioner of Agriculture
and Industries
Troy King
Attorney General
Samantha Shaw
State Auditor
Bill Newton
Department of Finance
Emory Folmar
ABC Board
Neal Wade
Alabama Development Office
Irene Collins
Department of Senior Services
Rodger M. Smitherman
Senate President, Pro Tempore
Seth Hammett
Speaker of the House
Ronald L. Jones
Examiners of Public Accounts
Joyce Bigbee
Legislative Fiscal Office
Jerry Bassett
Legislative Reference Service
Richard Allen
Department of Corrections
Brock Long
Emergency Management Agency
Joe McInnes
Department of Transportation
Tom Surtees
Department of Industrial
Relations
Carol H. Steckel
Alabama Medicaid Agency
Cynthia Underwood
Department of Revenue
Jim L. Ridling
Department of Insurance
Jim Walker
Office of Homeland Security
EXECUTIVE BRANCH DEPARTMENTS
Cynthia S. Dillard
Board of Pardons and Paroles
Doni Ingram
ADECA
Adjutant General Abner C. Blalock
State Military Department
Nancy Buckner
Department of Human Resources
John D. Harrison
State Banking Department
Jim Bennett
Department of Labor
Barnett Lawley
Department of Conservation
and Natural Resources
Col. J. Christopher Murphy
Department of Public Safety
James K. Lyons
Alabama State Port Authority
John Houston
Department of Mental Health
Lee Sentell
Tourism Department
Dr. Marquita Davis
Department of Children’s Affairs
9
JUDICIAL BRANCH
Supreme Court
Court of Civil Appeals
Court of Criminal Appeals
Circuit and District Courts
Administrative Office of Courts
Other Elected Officials
Lieutenant Governor
Secretary of State
Attorney General
State Treasurer
State Auditor
State Board of Education
Agriculture & Industries
Commissioner
Public Service Commission
STATE OF ALABAMA
ORGANIZATION CHART
Voters
of
Alabama
A
LEGISLATIVE BRANCH
House of The
Representatives Senate
eE
Legislative Fiscal Office
Legislative Reference Service
EXECUTIVE BRANCH
Examiners of
Public Accounts
Independent Agencies and
Institutions
Archives and History
Building Commission
Commission on Higher Education
Criminal Justice Information Center
Education
Ethics Commission
Forensic Sciences
Forestry Commission
Geological Survey
Institutions of Higher Education
Oil & Gas Board
Office of Prosecution Services
Personnel Department
Postsecondary Education
Public Health
Public Library Services
Retirement Systems of Alabama
Securities Commission
Veterans Affairs
Youth Services
Other Boards & Commissions
Governor
Alcoholic Beverage Control Board
Alabama Development Office
Banking
Children’s Affairs
Conservation and Natural Resources
Corrections
Economic and Community Affairs
Emergency Management
Environmental Management
Finance
Homeland Security
Human Resources
Industrial Relations
Insurance
Labor
Medicaid
Mental Health
Military
Pardons and Paroles
Public Safety
Revenue
Senior Services
State Port Authority
Tourism
Transportation
10
STATE OF ALABAMA
FINANCIAL SECTION
11
15
STATE OF ALABAMA
MANAGEMENT’S DISCUSSION AND ANALYSIS
The following is a narrative overview and analysis of the financial activities of the State of Alabama for the fiscal year ended September
30, 2010. Please consider the information presented here in conjunction with the letter of transmittal, which is located in the
Introductory Section of this report, and the State’s financial statements, which immediately follow this discussion and analysis.
Financial Highlights
The State’s net assets increased by $462 million during fiscal year 2010. The assets of the State exceeded its liabilities at the
close of the fiscal year by $23.7 billion (net assets). Of this amount, $19.4 billion was invested in capital assets (net of related
debt), and $3.1 billion was in the Alabama Trust Fund Capital.
The Change in Net Assets in governmental activities was $534 million.
Governmental activities have $3.2 billion in investments, $2.5 billion of which is held in the Alabama Trust Fund.
Grant revenues increased $2.1 billion as federal stimulus money flowed into the State
Tax receipts were down for the second year , this time by $123 million, or 1.7 percent as the economy remained in a downturn.
While federal programs swelled from federal stimulus money, the low tax receipts resulted in General Fund and Education
Trust Fund proration.
Investment earnings were $318 million, an improvement over last year’s $259 million earnings.
The business-type activities reported net assets at year-end of $1.1 billion, a decrease of $72 million for the fiscal year. This
decrease was primarily from rising unemployment benefit payments.
The State’s total bond debt at the end of the fiscal year was $1.68 billion, an increase of $76 million, which represents the net
difference between new issuances and payments and refundings of outstanding debt.
During the year the State issued $110 million in new general obligation bonds and $112 million in general obligation refunding
bonds. The State made payments on general obligation bonds of $26 million during the year. The State issued $34 million in
new revenue bonds and $27 million in refunding revenue bonds.
As of the close of the current fiscal year, the State’s governmental funds reported combined ending fund balances of $5.1
billion, an increase of $375 million from last year. Approximately $1.5 billion of the fund balance is unreserved, undesignated
fund balance.
On a budgetary basis, General Fund expenditures and other uses exceeded revenues and other sources by $44 million.
However, on a GAAP (Generally Accepted Accounting Principles) basis, General Fund expenditures and other uses exceeded
revenues and other sources by $139 million. The Budgetary Comparison Schedule in Required Supplementary Information
reconciles these amounts and lists the accounting basis differences.
Overview of the Financial Statements
This discussion and analysis is an introduction to the State of Alabama’s basic financial statements. The State’s basic financial
statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the
financial statements. This report also contains required supplementary information and other supplementary information in addition to
the basic financial statements.
Government-wide Financial Statements
The government-wide financial statements provide a broad overview of the State’s financial position and activities measured in a
manner similar to a private-sector business. Assets, liabilities, revenues, expenses, gains, and losses are measured and reported using
the economic resources measurement focus and accrual basis of accounting. The government-wide financial statements exclude
fiduciary activities.
The Statement of Net Assets presents information on all of the State’s assets and liabilities at the end of the fiscal year. The difference
between the State’s assets and its liabilities is its net assets. Increases or decreases in net assets from year to year may serve as a useful
indicator of whether the financial position of the State is improving or not.
The Statement of Activities presents information showing how the State’s net assets changed during the most recent fiscal year. All
changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related
cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal
periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the State that are principally supported by taxes and
intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of
16
STATE OF ALABAMA
their costs through user fees and charges (business-type activities). The governmental activities of the State include general government,
economic development and regulation, education and cultural resources, natural resources and recreation, health- physical and mental,
social services, protection of persons and property, and transportation. Examples of business-type activities of the State are operation of
the State’s system of community and technical colleges, unemployment compensation services, operation of facilities for the distribution
and sale of alcoholic beverages, and services for shippers at the Port of Mobile.
The government-wide financial statements include not only the State of Alabama itself (known as the primary government), but also
legally separate component units for which the State is financially accountable. The major component units include the Public School
and College Authority, Housing Finance Authority, State Employees’ Insurance Board, Public Education Employees’ Health Insurance
Board, Water Pollution Control Authority, Department of Mental Health, University of Alabama, Auburn University, and University of
South Alabama. Financial information for the component units is reported in a separate column from the financial information presented
for the primary government. The government-wide financial statements can be found immediately following this discussion and
analysis.
Fund Financial Statements
A fund is a fiscal and accounting entity with a self-balancing set of accounts that the State uses to keep track of specific sources of
funding and spending for a particular purpose. Fund accounting is used to ensure and demonstrate compliance with finance-related legal
requirements. All of the funds of the State can be divided into three categories: governmental funds, proprietary funds, and fiduciary
funds.
Governmental funds
Most of the State’s basic services are reported in governmental funds. The governmental fund financial statements focus on near-term
inflows and outflows of resources of these funds and the balances of those resources available at year-end. These funds are measured
and reported using the current financial resources measurement focus and the modified accrual basis of accounting.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the
information presented for governmental funds with similar information presented for governmental activities in the government-wide
financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing
decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures, and Changes in
Fund Balances are followed by a reconciliation to the government–wide statements.
The types of funds which are categorized as governmental funds are the General Fund, special revenue funds, capital projects funds,
debt service funds, and permanent funds. Information is presented separately in the governmental fund Balance Sheet and in the
governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances for the General Fund, Alabama Trust Fund,
Education Trust Fund, Public Road and Bridge Fund, Public Welfare Trust Fund, and Alabama Medicaid Fund, all of which are
considered to be major funds. Data from the nonmajor governmental funds are combined into a single aggregated column on the basic
financial statements. Individual fund data for each of the nonmajor governmental funds can be found in the combining and individual
fund statements and schedules section of this report.
Proprietary funds
Services for which the State charges customers a fee are generally reported in proprietary funds. The State maintains two different types
of proprietary funds: enterprise funds and internal service funds. Like the government-wide statements, proprietary funds use the
accrual basis of accounting.
Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements.
These funds report activities that provide supplies and services to the general public in a manner similar to private business enterprises.
The major enterprise funds are the Unemployment Compensation Trust, State Port Authority, Alabama College System, and the
Alcoholic Beverage Control Board. Individual fund data for each of the nonmajor enterprise funds can be found in the combining and
individual fund statements and schedules section of this report.
Internal service funds report activities that provide supplies and services to other state agencies on a cost-reimbursement basis. These
funds are reported as governmental activities on the government-wide financial statements. These funds provide computer services,
information technology, telecommunications, rental of office buildings, janitorial services, building maintenance, manufacturing
activities, and liability protection. The internal service funds are aggregated in a single column on the proprietary fund statements.
Fiduciary funds
The State acts as a trustee or fiduciary for its employee pension plans. It is also responsible for other assets that, because of a trust
arrangement, can be used only for the trust beneficiaries. The State’s fiduciary activities are reported in separate Statements of
Fiduciary Net Assets and Changes in Fiduciary Net Assets. These funds, which include pension and other employee benefits, private-
17
STATE OF ALABAMA
purpose, and agency funds are reported using accrual accounting. The government-wide financial statements exclude fiduciary fund
activities and balances because the resources of those funds are not available to support the State’s own programs.
Notes to the Financial Statements
The notes to the financial statements are an integral part of the financial statements. They explain amounts shown in the financial
statements and provide additional information that is essential to the fair presentation of the government-wide and fund financial
statements.
Required Supplementary Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary
information which includes (1) budgetary comparison schedule reconciling the budgetary fund balances and generally accepted
accounting principles fund balances at fiscal year-end, (2) ten year loss development information for the State Insurance Fund, (3) a
schedule of funding progress for the Employees’ Retirement System, (4) a schedule of funding progress for the Retired State
Employees’ Health Care Trust, and (5) information about infrastructure assets reported using the modified approach.
Other Supplementary Information
Other supplementary information includes combining financial statements for nonmajor governmental funds, nonmajor enterprise funds,
internal service funds, fiduciary funds, and nonmajor discretely presented component units. These funds are added together by fund
type and presented in single columns in the basic financial statements.
Government-wide Financial Analysis
Net assets may serve over time as a useful indicator of a government’s financial position. The State’s combined assets exceeded
liabilities by $23.7 billion as of September 30, 2010.
The largest component (82 percent) of the State’s net assets reflects its investment in capital assets, such as land, buildings, equipment,
and infrastructure (e.g., roads, bridges, tunnels), less any related debt used to acquire those assets that is still outstanding. The State uses
these capital assets to provide services to its citizens; consequently, these assets are not available for future spending. Although the
State’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must
be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. Capital Assets increased
$395 million. Of that amount $314 million was infrastructure and infrastructure construction in progress.
Current and Other Assets increased $714 million, or 9.5%. Included in that amount was an increase in cash and cash equivalents of
$428 million and an increase in investments of $137 million. $57 million of the investment increase was an increase in funds required
by law to be set aside and invested for capital grants to cities and counties.
Long-term liabilities increased 10.5 percent, or $238 million. The largest components of this increase were $82 million in general
obligation bonds, $67 million in capital leases and notes payable, and $100 million for post-employment health care benefits. Other
Liabilities for business-type activities increased by $263 million, or 109.5 percent, primarily because of Federal Unemployment Trust
Fund advances reported in Due to Other Governments.
Restricted net assets represent resources that are subject to external restrictions, constitutional provisions, or legislative restrictions on
how they may be used. Internally imposed designations of resources are not presented as restricted net assets. The State’s net assets
that are unrelated to capital assets include $5.0 billion in restricted net assets. Unrestricted net assets represent the remaining amount of
net assets that may be used to meet the State’s ongoing obligations that are not funded by resources that are restricted. The State has a
deficit in unrestricted net assets of $677 million. Unrestricted net assets for governmental activities are a deficit of $821 million, while
business-type activities have a positive balance in unrestricted net assets of $144 million.
18
STATE OF ALABAMA
Net Assets as of September 30
(Amounts in Thousands)
Governmental Activities
2010
2009
Business-type Activities
2010
2009
Total Primary Government
2010
2009
Current and Other Assets
Capital Assets
Total Assets
Long-term Liabilities
Other Liabilities
Total Liabilities
Net Assets
Invested in Capital Assets,
Net of Related Debt
Restricted
Unrestricted
Total Net Assets
$
7,440,887
18,958,959
26,399,846
1,815,599
1,973,233
3,788,832
$
6,906,106
18,598,291
25,504,397
1,600,702
1,826,337
3,427,039
$
815,240
1,504,016
2,319,256
687,653
503,288
1,190,941
$
635,541
1,469,216
2,104,757
664,653
240,283
904,936
$
8,256,127
20,462,975
28,719,102
2,503,252
2,476,521
4,979,773
$
7,541,647
20,067,507
27,609,154
2,265,355
2,066,620
4,331,975
$
18,552,286
4,879,585
(820,857)
22,611,014
$
18,184,809
4,448,305
(555,756)
22,077,358
$
881,681
102,653
143,981
1,128,315
$
867,292
92,470
240,059
1,199,821
$
19,433,967
4,982,238
(676,876)
23,739,329
$
19,052,101
4,540,775
(315,697)
23,277,179
The table on the following page was derived from the government-wide Statement of Activities. As a result of the excess of expenses
over revenues, the State’s net assets increased by $462 million during fiscal year 2010. Taxes provided $7.2 billion, or approximately
33 percent, of the State’s total revenue. Tax revenues decreased $123 million, or 1.7 percent, compared to the previous year as the
economy was in recession for the early part of the fiscal year. Despite the drop in tax revenues, overall revenue increased $2.4 billion,
or 12.1%. Operating Grants and Contributions revenue increased $2.0 billion, or 24.7 percent, because of the increase in federal grant
receipts from the federal stimulus programs. Grants and contributions not restricted to specific programs rose from $785,000 to $40.3
million primarily as a result of a $39.1 million federal bonus award for outstanding performance in the State’s Medicaid program.
Investment earnings were $318 million, an improvement over last year’s $259 million. Charges for Services revenue increased $92
million, or 4.3 percent.
The increase in federal dollars enabled total expenses to increase by $1.6 billion, or 8.1 percent in 2010. Spending increased
significantly in most areas. Health increased $588 million, or 10.6 percent, as expenses for Medicaid surged $504 million, or 11.3
percent. A total of $6.1 billion, or 29 percent of all expenses, was spent on Health, which included $5 billion spent in Medicaid
programs. Social Services was up $386.9 million, or 19.6 percent, as high unemployment increased expenses for food assistance by
$272.6 million and the temporary assistance to needy families program increased $49.9 million. Total Social Services spending was
nearly $2.4 billion, or 11 percent of total expenses. Transportation increased $136 million, or 12.2 percent. General Government was
up $84 million, or 8.6 percent. Education spending, however, was fairly flat at a mere 0.6 percent increase. Education spending is
funded primarily by tax revenues, which, as discussed earlier, rose only 1.7 percent. Education and Cultural Resources spending totaled
$6.4 billion, or 30 percent, of the State’s total expenses, down from 32.2 percent in 2009. Economic Development and Regulation
spending was down $77 million, or 25.2 percent because the prior year included major industrial recruit grant payments to
ThyssenKrupp and Goodyear.
In business-type activities, high unemployment rates and extended benefits drove spending for Unemployment Compensation up by
$317 million, a 31.5 percent increase. The expenses for the Alabama College System increased by 8.2% primarily because of
increases in student aid and scholarships. The State Port Authority recognized a 3.3 percent savings in operating expenses primarily
because of furloughs for the hourly workforce and attrition.
.
19
STATE OF ALABAMA
Changes in Net Assets
For the Fiscal Year Ended September 30
(Amounts in Thousands)
Governmental Activities
2010
2009
Business-type Activities
2010
2009
Total Primary Government
2010
2009
$
1,208,956
9,148,048
927,443
$
1,345,227
7,609,718
812,481
$
1,012,435
1,176,837
31,809
$
784,307
666,931
49,654
$
2,221,391
10,324,885
959,252
$
2,129,534
8,276,649
862,135
7,188,356
7,311,874
10,558
9,930
7,198,914
7,321,804
40,323
315,520
879,724
19,708,370
785
245,601
711,769
18,037,455
-
2,572
11,561
2,245,772
-
13,172
12,274
1,536,268
229,170
6,434,312
149,745
6,143,253
2,364,313
1,146,261
1,257,094
1,067,587
47,829
306,533
6,393,573
113,621
5,555,138
1,977,390
1,112,213
1,120,902
983,451
51,184
18,839,564
17,614,005
1,323,058
123,551
897,134
254,001
45,639
2,643,383
1,005,780
127,192
829,039
253,312
45,339
2,260,662
40,323
318,092
891,285
21,954,142
229,170
6,434,312
149,745
6,143,253
2,364,313
1,146,261
1,257,094
1,067,587
47,829
1,323,058
123,551
897,134
254,001
45,639
21,482,947
785
258,773
724,043
19,573,723
306,533
6,393,573
113,621
5,555,138
1,977,390
1,112,213
1,120,902
983,451
51,184
1,005,780
127,192
829,039
253,312
45,339
19,874,667
868,806
423,450
(397,611)
(724,394)
471,195
(300,944)
Revenues:
Program Revenues:
Charges for Services
Operating Grants and Contributions
Capital Grants and Contributions
General Revenues:
Taxes
Grants and Contributions Not
Restricted to Specific Programs
Investment Earnings
Miscellaneous
Total Revenues
Expenses:
Economic Development and Regulation
Education and Cultural Resources
Natural Resources and Recreation
Health
Social Services
Protection of Persons and Property
Transportation
General Government
Debt Service - Interest and Other Charges
Unemployment Compensation
State Port Authority
Alabama College System
Alcoholic Beverage Control Board
Nonmajor Proprietary Funds
Total Expenses
Increase (Decrease) in Net Assets
Before Contributions and Transfers
Contributions to Permanent Funds & Endowments
Special Items
Transfers
-
-
(335,150)
-
-
(357,623)
102
(9,147)
335,150
71
-
357,623
102
(9,147)
-
71
0
-
Change in Net Assets
Net Assets- Beginning
Net Assets- Ending
533,656
65,827
(71,506)
(366,700)
462,150
(300,873)
22,077,358
22,611,014
$
22,011,531
22,077,358
$
1,199,821
1,128,315
$
1,566,521
1,199,821
$
23,277,179
23,739,329
$
23,578,052
23,277,179
$
20
STATE OF ALABAMA
Governmental Activities
Total revenues for governmental activities in fiscal year 2010 were $19.7 billion. Revenue is categorized as either program revenue,
which is generated by the program itself or is received from another government, or general revenue. Program revenues include charges
for services, operating grants and contributions, and capital grants and contributions. Operating grants and contributions along with
taxes together accounted for 83 percent of governmental activities revenue.
Program revenues totaled $11.3 billion, up from $9.8 billion the previous year. Operating grants and contributions are the largest
program revenues, and at $9.1 billion, make up 46 percent of total governmental revenues. Operating grants and contributions grew
$1.5 billion, or 20 percent compared to the previous year, due to the influx of federal stimulus funds. Operating grants and contributions
were up $397 million to the Education Department, largely from stimulus programs. Grants for food assistance increased $273 million
while Medicaid assistance was up $385 million. About 92 percent of operating grants and 97 percent of the capital grants were received
from the Federal government. Capital grants and contributions increased $115 million, or 14 percent, almost all of it being federal
support for road and bridge construction.
Charges for services decreased $136 million, or 10.1 percent, compared to the previous year. Of that $136 million, $81.8 was due to
one time court settlements received in 2009, while $38 million is attributable to a decrease in revenues from oil and gas leases. Oil and
gas lease revenues often fluctuate greatly from year to year as the commodity markets go up and down.
General revenues, which include taxes, of governmental activities were $8.4 billion, an increase of 1.9 percent. Taxes were $7.2 billion,
down from $7.3 billion the previous year. Revenue from all tax types represents 37 percent of total governmental revenues earned
during fiscal year 2010. Of the $7.2 billion in tax revenues, the largest taxes were income taxes of almost $3.0 billion and sales and use
taxes of $2.1 billion. Sales and use taxes were up 1.4 percent, while income taxes decreased 4.4 percent, reflecting the downturn in the
economy.
Revenues - Governmen tal Activities
Fiscal Year Ended September 30, 2010
Operating Grant s and
Contributions
46%
Capital Grants and
Contributions
5%
O ther
6%
Charges for
Services
6%
Taxes
37%
21
STATE OF ALABAMA
Total operating expenses for governmental activities in fiscal year 2010 were $18.8 billion. Expenses for governmental activities are
grouped by functional area. The two largest functional areas were (1) Education and Cultural Resources and (2) Health. These two
areas together accounted for 67 percent of the governmental activities expenses for fiscal year 2010. Social Services accounted for 12
percent of the governmental activities expenses. Overall expenses increased by $1.2 billion, or 7 percent.
Education spending increased 0.6 percent, or $40.7 million, as the decrease in income tax revenue forced constitutionally mandated
proration of 9.5 percent of the budget in the Education Trust Fund. Education and Cultural Resources now makes up 34 percent of
governmental activity expenses, down from 36 percent last year. Within Education and Cultural, 90 percent is support for local school
systems and state universities. Support for local school systems increased $136 million, or 3.0 percent, support for universities
decreased $15 million, or 1.4 percent, and support for most other programs decreased slightly as well.
Health accounted for 33 percent of governmental activity spending, up slightly from 32 percent last year. The Medicaid program
accounts for 82 percent of Health spending and the Department of Public Health accounts for 11 percent.
Expenses - Governmental Activities
Fiscal Year Ended September 30, 2010
General Government
6%
Education and Cultural
Resources
34%
Other
2%
Social Services
12%
Protection of Persons and
Property
6%
Transportation
7%
Health
33%
22
STATE OF ALABAMA
Business-type Activities
The largest business-type activity is the Alabama College System, which accounts for 85.6 percent of business-type net assets. The
other major business-type activities are the Alabama Port Authority, the Alcoholic Beverage Control Board, and the Unemployment
Compensation Trust. In fiscal year 2010 the net assets of business-type activities decreased by $72 million. The largest change
occurred in the Unemployment Compensation Trust fund, where the decrease in net assets was $131 million. The high unemployment
rates and federal extended benefits increased unemployment benefit payments by $314 million. The Unemployment Compensation
Trust Fund was in a borrowing status from the Federal Bureau of Public Debt, and the State did not receive any interest income during
fiscal year 2010. The second largest change occurred in the Alabama College System, where the increase in net assets was $72 million.
The Alabama College System received $391 million in operating grants and contributions including federal stimulus funds. Also, the
Alabama College System receives most of the Transfers In that are reported in the business-type activities. Most of these transfers are
from the Education Trust Fund as mandated by the legislature in the appropriation acts. Revenues of business-type activities totaled
$2.2 billion, an increase of 46.2 percent. This large increase was primarily due to increased rates charged to employers for
unemployment compensation, and federal stimulus funds for the colleges. Most of this revenue was self-generated program revenues;
only $24.7 million of the $2.2 billion revenues came from general revenues. The program revenues consisted of $1.0 billion of charges
for services, a 29.1 percent increase, and $1.2 billion of operating grants and contributions, a 76.5 percent increase. The 76.5 percent
increase was primarily federal stimulus funds. The total expenses for business-type activities were $2.6 billion, up 16.9 percent,
primarily because of unemployment benefit payments.
Financial Analysis of the State’s Funds
Governmental Funds
The focus of the State’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable
resources. Such information is useful in assessing the State’s financing requirements. In particular, unreserved fund balance may serve
as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
At the end of fiscal year 2010, the governmental funds reported combined ending fund balances of $5.1 billion. Of this total amount,
$3.5 billion is reserved and is not available for spending because it has already been legally dedicated for various contractual
commitments, court settlements, constitutional restrictions, and other purposes. The largest reserved amount of $3.1 billion is for
Alabama Trust Capital. The Alabama Trust Fund originally was a permanent fund, but is now a special revenue fund because of
Amendment 666 to the Constitution of Alabama of 1901 which allows spending of principal equal to the previous year’s unrealized
gains. An additional $394 million of governmental fund balance has been reserved for a variety of purposes while $154 million of
governmental funds have been designated for various capital projects and debt service, leaving $1.5 billion as unreserved and
undesignated.
The General Fund is the primary operating fund of the State. At the end of the current fiscal year, unreserved fund balance of the
General Fund was $77 million, and reserved fund balance was $5 million. Revenues for the General Fund decreased $151 million, or 11
percent, as taxes decreased $49 million, court settlements decreased $53 million, other revenue decreased $40 million, and investment
income decreased $11 million. One time revenues were the cause of the decrease in both court settlements and other revenues as the
State benefitted in 2009 from a $52 million drug settlement and a $40 million receipt from a component unit. Expenditures for the
General Fund decreased $219 million, or 15 percent. Health expenditures decreased $88 million, as overall grant payments related to
Medicaid programs decreased $103 million. Medicaid hospital care program grants decreased $63 million. The Medicaid nursing home
care program grants decreased $82 million. The Medicaid Pharmaceutical program was up $30 million. A portion of the Medicaid
decrease in hospital care program and nursing home care program grant payments was the result of payments being made from stimulus
funds in the Medicaid Fund and the Alabama Health Care Trust Fund, a nonmajor governmental fund. Protection of Persons and
Property expenditures decreased $122 million, with $101 million of decrease being spent with stimulus funds in nonmajor governmental
funds for correctional facility operations. Spending on General Government decreased $13 million. Spending in most general
government departments was relatively unchanged from the previous year, most of the decline was in employee salaries and benefits of
$9 million and professional services of $3 million. Across all functional categories General Fund spending for supplies and materials
was up 8 percent while all other categories were down. The largest decrease was in spending for grant payments which was down 21%.
Spending for employee salaries and benefits was down 16% as departments shifted payroll costs to other funds. Due to Other Funds
increased $158 million to a balance of $168 million. A large portion, $162 million, is a loan owed to the Alabama Trust Fund. The
money was borrowed to alleviate revenue shortages in accordance with Amendment 803 to the Constitution of Alabama of 1901.
23
STATE OF ALABAMA
The Education Trust Fund (ETF) is the largest governmental fund of the State. Revenues credited to the ETF are used for the support,
maintenance, and development of public education in Alabama, debt service and capital improvements related to educational facilities,
and other functions related to educating the State’s citizens. Programs and agencies supported by the ETF include K-12 education,
public library services, performing and fine arts, scholarship programs, the State’s education regulatory departments, and two and four-
year colleges and universities. Funding from the ETF is also provided to non-state organizations that provide educational services to the
people of Alabama, including the arts, disease counseling and education, and youth development. Various tax sources are allocated to
the ETF, the largest of which are income tax, sales tax, utility tax, and use tax. Tax revenues in the ETF for fiscal year 2010 were down
$90 million, or 2 percent as compared to fiscal year 2009. Individual income tax revenues were down by $425 million, sales and use tax
revenues were up by $72 million, and corporate income tax revenues were up by $279 million. Expenditures, as limited by the budget,
were down 8 percent, or $429 million. A large portion of the decrease, $282 million, was in financial assistance to local school systems,
and support for state universities decreased $108 million. The ETF transferred out $381 million, with the largest of these transfers going
to supplement operations of the Alabama College System, a major Proprietary fund. The Alabama College System received $339
million in transfers as mandated by the legislature in the appropriations acts. Due to Other Funds in the ETF of $444 million includes
$437 million owed to the Education Rainy Day account in the Alabama Trust Fund. The ETF fund balance decreased $23 million to a
deficit of $245 million, primarily due to a reduction in cash of $17 million.
The Alabama Trust Fund consists of income from the sale or lease of rights for offshore exploration and drilling for oil and gas off the
Alabama coast, as well as investment income earned on the accumulated capital. Revenues from royalties and other payments related to
the production of oil and gas decreased by $40 million in 2010. Investment income increased from a $170 million gain to a $256
million gain, an increase of $86 million. Various amendments to the Constitution of Alabama of 1901 require that Alabama Trust
income be used to support the General Fund, Forever Wild Land Trust, and a variety of state and local capital projects and debt service.
In compliance with constitutional requirements, $203 million was transferred out to support these other funds. The asset account Due
From Other Funds increased by $162 million as an interfund loan was made to the General Fund under the authority of Amendment 803
to the Constitution Alabama of 1901. During the 2010 fiscal year, the amount constitutionally reserved for Trust Capital increased by
$191 million, a 7 percent increase.
Medicaid accounts for a portion of the Medicaid program that is funded by Federal revenues and other non-state revenue sources.
Federal revenues increased 11 percent, or $406 million. Overall, revenues were up 9 percent, or $373 million. Expenditures increased
10 percent or $394 million with the largest increase being a $306 million increase in hospital care program. An increase in hospital care
program expenditures was due to a shift in payments from the General Fund to stimulus funds and due to a change in hospital
reimbursement methodology in accordance with Act 2009-549. Nursing Home Care increased $104 million with most of the increase
being due to payments being made in the General Fund last year, but were shifted to the Medicaid fund this year. Alternative care
programs declined $79 million or 18 percent. Accounts Receivable increased $23 million due to a one time final reimbursement due
from the Alabama Hospital Association to settle the old hospital reimbursement plan (Prepaid Health Plan). The net change in fund
balance for Medicaid was $46 million, increasing the total fund balance to $38 million from a deficit of $8.35 million in the prior year.
The Public Road and Bridge Fund is the general operating fund of the Department of Transportation (DOT) and receives all state
revenues for that department, including all federal aid reimbursements. Amendment No. 93 (as amended by Amendment No. 354) to the
Constitution of Alabama of 1901 provides that monies derived from any fee, excise or license taxes levied by the State on motor fuels
shall be expended for the cost of construction, reconstruction, maintenance and repair of public highways and bridges; the cost of
highway rights-of-way; the payment of highway obligations; the cost of traffic regulations; and the expense of enforcing state traffic and
motor vehicle laws. Federal revenues increased by 16 percent, or $124 million over 2009. Expenditures declined $19 million, or 1
percent. Cash balance rose from $318 million to $425 million. The fund balance increased by $54 million to a total fund balance of
$473 million. $79 million of that fund balance is committed in the form of encumbrances for various contracts and purchase orders, $26
million is in inventory of materials on hand, and $46 million is reserved by statute for replacement of equipment. The remaining $322
million is unreserved but the management of the DOT plans to use the money to cover commitments already made for construction and
maintenance contracts.
The Public Welfare Trust Fund is used to account for a broad range of social, protective, and financial assistance programs for citizens.
This is the major operating fund of the Department of Human Resources. 89 percent of the revenue is from federal funds, but is
supplemented by whiskey tax and a portion of the Alabama Alcoholic Beverage Control Board profits, sales tax, franchise tax, and beer
tax. Overall spending rose $371 million, or 23 percent. Spending on various children’s programs rose $26 million, or 7 percent. The
economic downturn created a huge increase in demand for food assistance, as spending increased $274 million, a 27 percent increase.
Expenses for the Temporary Assistance to Needy Families program rose $49 million, an increase of 76 percent. $2 billion was spent in
the fund in 2010, and the fund balance at year end is $83 million, a decrease of $1 million. The small fund balance is normal for this
fund, since the Federal Cash Management Improvement Act does not allow the State to draw money and hold it for more than a few
days.
24
STATE OF ALABAMA
The Education Trust Fund had a negative fund balance at September 30, 2010. This is not typical for the State’s major governmental
funds because the fiscally conservative nature of the State’s controls generally results in positive fund balances. Constitutional
Amendment 26 requires the State to have on hand at year end in each budgeted fund enough cash to cover all outstanding warrants and
any remaining unspent obligations (encumbrances and accounts payable). The Education Trust Fund had a negative fund balance at
September 30 resulting from the interfund loan owed to the Alabama Trust Fund. The accrual of taxes receivable in the General Fund
and Education Trust Fund almost always assures a positive fund balance. The Public Road and Bridge Fund retains enough cash to
cover their outstanding construction contracts and commitments so that fund historically has a large fund balance.
Proprietary Funds
The State’s proprietary fund financial statements provide the same type of information found in the government-wide financial
statements, but in more detail. During the fiscal year, total net assets for all enterprise funds declined by $72 million.
In fiscal year 2010, the net assets of the Unemployment Compensation Trust Fund were $152.8 million in deficit, a decreased of
$130.5 million. The State Unemployment Insurance tax rate was raised effective January 1, 2010. Average tax rates per employee per
year ranged from $64 to $512 in 2009. In 2010, the rates increased to $172 to $664, per employee per year. The increase in
Unemployment Insurance tax rate brought in additional $190.9 million revenues comparing to the year before, a 90.4 percent increase.
However, due to elevated unemployment compensation claims and the extension of unemployment benefits, the unemployment benefit
payments were $1.3 billion dollars in 2010, an increase of $314 million, a 31.4 percent increase. The State borrowed funds from the
Federal Government to pay benefits and still owed the Federal Government $283 million for advances at year-end.
The net assets of the State Port Authority decreased by $8 million to $318 million. Operating revenues have shown a modest increase,
to $106 million from $103 million the prior year, a 3 percent increase, resulting from a number of factors. The McDuffie Coal Terminal
experienced increased revenues because of the strong market for metallurgical coal and the Terminal Railway benefited from significant
volumes of grain shipped through the leased grain facility. However, the State Port Authority has $364 million in revenue bonds
payable. The interest paid during fiscal year 2010 was $13 million. The current principal portion of this debt is $8 million. $162
million of this debt has variable interest rates indexed to LIBOR. The economy has a significant effect on the State Port Authority’s
interest expense as well as its operating revenues.
The Alabama College System’s net assets increased $72 million in 2010, primarily because of an increase in federal grants including
stimulus funds. Grants increased from $296 million in fiscal year 2009 to $391 million in fiscal year 2010, a 32 percent increase.
The net assets of the Alcoholic Beverage Control Board declined by $3 million in fiscal year 2010, resulting in a $13 million deficit.
The Board is required by law to distribute all of its profits and cannot own real property; therefore, net assets generally will remain
negative.
Budgetary Highlights
General Fund
The original budget for the General Fund was decreased by a net of $56 million during fiscal year 2010. Expenditures were decreased
by $23 million and Transfers Out decreased by $33 million, and the increases and decreases are reflected in the final budget on the
Budgetary Comparison Schedule. 12 percent proration was declared in April 2010 because cash collections were not meeting budget
projections. This decreased the budget by $184 million. The Department of Corrections was cut by $37 million and the Medicaid
Agency was cut by $42 million. Then in September 2010 the budget was increased by $31 million as a result of a 2 percent reduction in
proration because of the remaining cash close to year-end.
There were significant budgetary variances between the final budget and actual results. Unexpended and reverted appropriations from
fiscal year 2010 were reappropriated to fiscal year 2011; therefore, many agencies did not spend all of their appropriations during fiscal
year 2010. The Medicaid Agency has the largest carryover of $35 million to fiscal year 2011. The Department of Public Safety, the
Legislature, Department of Corrections, Department of Economic and Community Affairs, and the Department of Finance have $7
million, $6 million, $5 million, $5 million, and $3 million, respectively. These funds will be needed in the future because federal
stimulus funds will have been expended and projections for State revenues are not improving.
There were budget increases to various agencies as a result of supplemental appropriations which totaled $101 million. The Department
of Corrections received $52 million of this supplemental appropriation for correctional facility operations. The largest expenditures for
correctional facilities are correctional officer salaries and benefits, and medical care for prisoners. The Medicaid Agency received $42
million of this supplemental appropriation. The Medicaid Agency uses these funds to match the federal grants for Medicaid programs.
25
Capital Asset and Debt Administration
STATE OF ALABAMA
Conditional and other appropriations were approximately $3 million to various agencies. Conditional amounts are not included in the
budget until the conditions have been met. Some expenditures are required by law to be fully funded, and estimated amounts are
approved in the General Fund appropriation bill. Increases to these estimated amounts do not require a new bill and are included as
other appropriations. Emergency appropriations of $2 million are included in the original budget and are included in the budgeted
amounts as Other on the Budgetary Comparison Schedule. Emergency appropriations cannot exceed two percent of the total amount
appropriated. The annual budget was decreased by $6 million as a result of capital project appropriations for the Department of
Corrections. On a budgetary basis, General Fund expenditures and other uses exceeded revenues and other sources by $44 million.
However, on a GAAP (Generally Accepted Accounting Principles) basis, General Fund expenditures and other uses exceeded revenues
and other sources by $139 million. The Budgetary Comparison Schedule in Required Supplementary Information reconciles these
amounts and lists the accounting basis differences.
Capital Assets
At the end of fiscal year 2010 the State had invested $20.5 billion, net of accumulated depreciation, in a broad range of capital assets
(see the table below). Depreciation charges for the fiscal year totaled $146 million.
Capital Assets as of September 30
(Amounts in Thousands)
Capital Assets Not Being Depreciated:
Land
Historical Exhibits
Construction In Progress
Construction In Progress - Infrastructure
Infrastructure
Inexhausible Intangible Assets
Total Capital Assets Not Being Depreciated
Capital Assets Being Depreciated:
Buildings
Equipment
Software and Other Intangible Assets
Total Capital Assets Being Depreciated
Governmental Activities
2010
2009
Business-type Activities
2010
2009
Total Primary Government
2010
2009
$
281,711
2,658
145,038
5,043,948
12,540,902
-
18,014,257
$
242,590
2,658
122,347
4,916,622
12,354,313
-
17,638,530
$
82,690
2,350
114,257
-
-
10
199,307
$
82,621
2,350
224,977
-
-
10
309,958
$
364,401
5,008
259,295
5,043,948
12,540,902
10
18,213,564
$
325,211
5,008
347,324
4,916,622
12,354,313
10
17,948,488
1,267,316
627,859
7,346
1,902,521
1,257,465
605,332
2,658
1,865,455
1,554,743
533,446
3,248
2,091,437
1,397,718
485,879
3,248
1,886,845
2,822,059
1,161,305
10,594
3,993,958
2,655,183
1,091,211
5,906
3,752,300
Less Accumulated Depreciation
Total Capital Assets Being Depreciated, Net
957,819
944,702
905,694
959,761
786,728
1,304,709
726,792
1,160,053
1,744,547
2,249,411
1,632,486
2,119,814
Capital Assets, Net
$
18,958,959
$
18,598,291
$
1,504,016
$
1,470,011
$
20,462,975
$
20,068,302
As allowed by GASB Statement No. 34, the State has adopted the modified approach for reporting roadway and bridge infrastructure
assets. Under the modified approach, depreciation is not recorded. Infrastructure costs that result in an increase in the capacity or an
improvement in the efficiency of the infrastructure network are capitalized and added to the historical cost of the assets. Costs that
allow the infrastructure network to be used efficiently over the expected useful life of the assets are expensed as general maintenance
costs. Certain maintenance costs that extend the useful life of the assets but do not increase capacity or efficiency are classified as
preservation costs. Preservation costs are expensed and reported in lieu of a charge for depreciation expense.
Extensive project documentation is required to meet various federal and state guidelines concerning the construction of infrastructure.
The completeness of this documentation affects the timing of project capitalization. The State capitalizes infrastructure when all costs
for a project are incurred and all project documentation is satisfactorily completed, filed, and accepted with the appropriate entities.
Projects that meet the cost and documentation criteria are closed, and appropriate entries are made to adjust the Infrastructure
Construction in Progress and Infrastructure asset accounts annually. Due to the documentation requirements, there can be substantial
time lags between the date a project is put into service on the State’s roadway network and the date the project is capitalized. A
significant portion of Infrastructure Construction in Progress consists of projects that have been put into service and maintenance costs
could have been incurred.
26
STATE OF ALABAMA
The State uses the International Roughness Index (IRI) to measure and monitor pavement conditions. The IRI is a standard representing
the perceived smoothness of pavements while traveling in passenger cars. A lower IRI measurement represents a smoother condition of
pavement. The United States Department of Transportation developed suggested values for IRI of <60 inches/mile to >220 inches/mile
to grade the smoothness condition of the roadway. A range of 60 to 94 is considered “Good” condition, with negligible maintenance
required, and a range of 95-119 for Interstate Highways or 95-170 for non-interstate highways is considered “Fair”, requiring routine
maintenance such as pavement patching. The weighted average rating of Alabama’s roads was 79.24, which exceeds the State’s goal.
The State maintains 5,368 bridges and culverts. The State rates the major structural components and deck area of the bridge or culvert
on a scale of one to ten and assigns a weighted rating to the bridge or culvert. The State expects those bridges and culverts to be
maintained at a rating within the range of 5 - 6.99, which is considered “satisfactory,” meaning the structural elements are sound but
have minor deterioration. The actual weighted average rating for the most recent condition assessment was 6.60, in the upper end of the
satisfactory range.
In fiscal years 2010, 2009, 2008, 2007, and 2006, the State estimated it would need to spend $306.0, $310.0, $320.0, $277.7, and
$247.1 million, respectively, to preserve and maintain all roadway assets and $10.0 million in each year to preserve all bridge assets at
or above the “Established Condition Levels” presented above. The State spent $387,793,000 for roadway preservation and $47,020,000
for bridge preservation in fiscal year 2010. In fiscal year 2009, the State spent $316,082,000 for roadway preservation and $34,457,000
for bridge preservation. In the next fiscal year, the Alabama Department of Transportation estimates that it will need to spend
approximately $319,568,000 to preserve all roadway assets and approximately $10,000,000 to preserve all bridge assets at or above the
“Established Condition Levels” presented above. Even though actual spending for bridge preservation fell below estimated, condition
levels are expected to continue to meet or exceed the “Established Condition Levels”.
More detailed information about the State’s capital assets is presented in Note 3 to the financial statements and in the Required
Supplementary Information section.
Long-term Debt
The only method under which general obligation debt can be incurred is by amendment to the Constitution of Alabama of 1901. The
debt prohibition does not apply to debts incurred by separate public corporations functioning as State instrumentalities. The revenue
bonds issued by these corporations are limited obligations of the corporation, not general obligations of the State, and the full faith and
credit of the State is not pledged for their repayment. Certain revenues, usually earmarked taxes or revenues generated from the project
financed, are pledged for the payment of the debt. Some of these corporations are blended with the primary government and some are
reported discretely. The State and its component units issue serial and term bonds and capital appreciation bonds. Alabama has
traditionally received high bond ratings from both Standard and Poor’s Corporation and Moody’s Investors Service. Currently, an
exception is the upper medium bond ratings for the Tobacco Settlement Revenue Bonds issued by the Alabama Twenty-first Century
Authority, a component unit of the State. Also, Fitch Ratings Ltd and Standard and Poor’s Corporation lowered the bond ratings for the
State Port Authority to BBB+ in September 2009. Moody’s withdrew their rating for the State Port Authority in June 2009.
Outstanding B onded Debt as of September 30
(Amounts in Thousands)
Governmental Activities
2010
2009
Business-type Activities
Total Primary Government
2010
2009
2010
2009
General Obligation Bonds
Revenue B onds
Total
$
$
769,330
274,283
1,043,613
$
$
687,336
298,712
986,048
$
-
638,109
638,109
$
$
-
619,360
619,360
$
$
$
769,330
912,392
1,681,722
$
$
687,336
918,072
1,605,408
The State issued $110,000,000 in new general obligation bonds and $112,030,000 in refunding general obligation bonds. The
Alabama Building Renovation Authority issued $26,990,000 in refunding bonds. The State Port Authority issued $15,100,000 in
new bonds. The Alabama College System issued $19,033,000 in new bonds. More detailed information regarding the State’s
long-term debt is presented in Note 4 to the financial statements.
27
STATE OF ALABAMA
Economic Factors and Next Year’s Budgets and Rates
On February 28, 2011 the new governor declared 3 percent proration for the fiscal year 2011 Education Trust Fund budget because of
revenue shortfalls. Furthermore, he announced plans to declare 15 percent proration in the State General Fund, after first working with
the Legislature for supplemental appropriations to protect priority agencies that provide necessary and critical services. With one time
federal stimulus money now depleted, Alabama is left with the loss of hundreds of millions of dollars in both state budgets. The
Education Trust Fund budget has a $165 million shortfall while the General Fund budget has a $110 million shortfall. Agencies will
have to revise their operating plans including plans for employee layoffs. State agencies normally receive allotments of 25 percent each
quarter. The first two quarters were not cut; therefore, all of the shortfall will be in the last half of the fiscal year. Tax collections are
down and the future economic condition is uncertain for the nation. This economic recession will continue to impact Alabama. The
State’s seasonally adjusted unemployment rate, at 9.3 percent in January 2011, was above December 2010’s rate of 9.1 percent but was
below the year-ago rate of 10.3 percent.
Requests for Information
This financial report is designed to provide a general overview of the State of Alabama’s finances for all those with an interest in the
government’s finances. Questions concerning any of the information provided in this report or requests for additional financial
information should be addressed to: Office of the State Comptroller, Financial Reporting Section, RSA Union, Suite 206, Montgomery,
AL 36130-2602.
28
STATE OF ALABAMA
FINANCIAL SECTION
Basic Financial Statements
29
STATE OF ALABAMA
STATEMENT OF NET ASSETS
September 30, 2010
(Amounts in Thousands)
ASSETS
Cash and Cash Equivalents
Investments
Internal Balances
Due from Primary Government
Due from Component Units
Investment Sales Receivable
Accounts Receivable
Due from Other Governments
Taxes Receivable
Interest and Dividends Receivable
Mortgages, Notes, and Loans Receivable
Securities Lending Collateral
Inventory
Restricted Assets
Other Assets
Capital Assets, Net of Accumulated Depreciation
Capital Assets Not Depreciated
Deferred Outflows
TOTAL ASSETS
LIABILITIES
Warrants Payable
Investment Purchases Payable
Salaries Payable
Due to Primary Government
Due to Component Units
Accounts Payable
Interest Payable
Tax Refunds Payable
Due to Other Governments
Securities Lending Obligation
Unearned Revenue
Amounts Held in Custody for Others
Noncurrent Liabilities:
Due Within One Year
Due In More Than One Year
TOTAL LIABILITIES
NET ASSETS
Invested in Capital Assets, Net of Related Debt
Restricted for:
Permanent - Expendable
Permanent - Non-expendable
Forever Wild Stewardship Account
Alabama Trust Capital
Local Government
Education
Natural Resources and Recreation
Social Services
Protection of Persons and Property
Transportation
General Government
Debt Service
Capital Projects
Other Purposes
Unrestricted
TOTAL NET ASSETS
Governmental
Activities
Business-type
Activities
$ 2,239,066
3,234,329
19,141
-
13,602
145,069
58,465
510,429
814,972
26,594
61
263,765
39,561
61,748
14,085
944,702
18,014,257
-
26,399,846
$ 454,428
192,899
(19,141)
-
-
-
116,934
931
-
-
-
1,228
40,776
-
27,185
1,304,709
199,307
-
2,319,256
Total
Primary
Government
$ 2,693,494
3,427,228
-
-
13,602
145,069
175,399
511,360
814,972
26,594
61
264,993
80,337
61,748
41,270
2,249,411
18,213,564
-
28,719,102
Component
Units
$ 2,075,450
5,603,578
-
196,742
71,293
-
688,862
792,696
-
24,325
544,510
23,795
35,215
31,516
211,111
4,696,697
758,760
4,171
15,758,721
49,191
225,216
172,507
-
194,290
599,569
8,917
64,333
231,793
263,765
14,185
72,906
69
-
7,515
-
2,452
76,528
7,040
-
284,831
1,228
79,493
11,620
49,260
225,216
180,022
-
196,742
676,097
15,957
64,333
516,624
264,993
93,678
84,526
1,618
-
23,781
13,602
71,293
491,637
71,936
-
125,219
23,795
632,375
291,010
76,561
1,815,599
3,788,832
32,512
687,653
1,190,941
109,073
2,503,252
4,979,773
498,656
6,815,379
9,060,301
18,552,286
881,681
19,433,967
2,859,973
24,374
45,784
24,798
3,061,559
8,619
172,432
46,823
126,691
77,347
385,357
103,712
730
117,777
683,582
(820,857)
$ 22,611,014
48,943
6,970
-
-
-
-
-
-
-
-
-
46,740
-
-
143,981
$ 1,128,315
73,317
52,754
24,798
3,061,559
8,619
172,432
46,823
126,691
77,347
385,357
103,712
47,470
117,777
683,582
(676,876)
$ 23,739,329
900,302
1,156,230
-
-
-
-
-
-
-
-
-
718,033
-
14,261
1,049,621
$ 6,698,420
The Notes to the Financial Statements are an integral part of this statement.
30
31
STATE OF ALABAMA
STATEMENT OF ACTIVITIES
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
PROGRAM REVENUES
Capital
Grants and
Contributions
Expenses
Charges for
Services
Operating
Grants and
Contributions
FUNCTIONS/PROGRAMS
Primary Government:
Governmental Activities:
Economic Development and Regulation
Education and Cultural Resources
Natural Resources and Recreation
Health
Social Services
Protection of Persons and Property
Transportation
General Government
Debt Service - Interest and Other Charges
Total Governmental Activities
Business-type Activities
Unemployment Compensation
State Port Authority
Alabama College System
Alcoholic Beverage Control Board
Nonmajor Proprietary Funds
Total Business-type Activities
Total Primary Government
Component Units:
Public School and College Authority
Mental Health
Housing Finance Authority
Water Pollution Control Authority
University of Alabama
Auburn University
University of South Alabama
Public Education Employees' Health Insurance
State Employees' Health Insurance Board
Nonmajor Component Units
Total Component Units
The Notes to the Financial Statements are an integral part of this statement.
32
$ 229,170
6,434,312
149,745
6,143,253
2,364,313
1,146,261
1,257,094
1,067,587
47,829
18,839,564
$ 92,134
42,774
62,347
249,149
7,622
231,004
186,440
337,486
-
1,208,956
$ 22,467
1,372,695
49,277
5,026,162
1,956,395
369,217
33,549
318,286
-
9,148,048
$ 0
9,760
5
-
3
-
917,675
-
-
927,443
-
5,598
26,211
-
-
31,809
959,252
-
-
-
-
83,228
47,598
20,292
-
-
23,420
174,538
1,323,058
123,551
897,134
254,001
45,639
2,643,383
21,482,947
380,405
865,389
74,207
38,320
3,298,467
827,659
608,196
789,269
439,229
1,136,131
8,457,272
411,147
120,460
179,677
252,647
48,504
1,012,435
2,221,391
308
28,132
48,713
19,016
2,079,319
414,433
411,620
763,255
460,769
502,261
4,727,826
784,981
102
391,385
250
119
1,176,837
10,324,885
-
45,492
-
29,196
774,087
204,666
37,225
5
8
270,023
1,360,702
General Revenues:
Taxes:
Sales and Use Taxes
Income Taxes
Motor Fuels Taxes
Utility Taxes
Insurance Premium Tax
Property Tax
Liquor Taxes
Tobacco and Cigarette Taxes
Grants and Contributions Not Restricted to Specific Programs
Investment Earnings
Miscellaneous
Contributions to Permanent Funds and Endowments
Payments from State of Alabama
Special Items
Extraordinary Items
Transfers
Total General Revenues, Special Items, and Transfers
Change in Net Assets
Net Assets, October 1, 2009, as Restated
Net Assets, September 30, 2010
Net (Expense) Revenue and Changes in Net Assets
Governmental
Activities
Business-type
Activities
Total
Primary
Government
Component
Units
$ (114,569)
(5,009,083)
(38,116)
(867,942)
(400,293)
(546,040)
(119,430)
(411,815)
(47,829)
(7,555,117)
-
-
-
-
-
0
(7,555,117)
-
-
-
-
-
-
-
-
-
-
0
2,108,834
2,973,246
551,210
684,437
263,243
314,977
156,098
136,311
40,323
315,520
879,724
-
-
-
-
(335,150)
8,088,773
$ 0
-
-
-
-
-
-
-
-
0
$ (114,569)
(5,009,083)
(38,116)
(867,942)
(400,293)
(546,040)
(119,430)
(411,815)
(47,829)
(7,555,117)
$ 0
-
-
-
-
-
-
-
-
0
(126,930)
2,609
(299,861)
(1,104)
2,984
(422,302)
(422,302)
(126,930)
2,609
(299,861)
(1,104)
2,984
(422,302)
(7,977,419)
-
-
-
-
-
-
-
-
-
-
0
-
-
-
-
-
-
10,558
-
-
2,572
11,561
102
-
(9,147)
-
335,150
350,796
-
-
-
-
-
-
-
-
-
-
0
2,108,834
2,973,246
551,210
684,437
263,243
314,977
166,656
136,311
40,323
318,092
891,285
102
-
(9,147)
-
-
8,439,569
-
-
-
-
-
0
0
(380,097)
(791,765)
(25,494)
9,892
(361,833)
(160,962)
(139,059)
(26,009)
21,548
(340,427)
(2,194,206)
-
-
-
-
-
-
-
-
7,104
454,211
96,430
27,967
2,218,154
-
3,089
-
2,806,955
533,656
22,077,358
$ 22,611,014
(71,506)
1,199,821
$ 1,128,315
462,150
23,277,179
$ 23,739,329
612,749
6,085,671
$ 6,698,420
33
STATE OF ALABAMA
BALANCE SHEET
Governmental Funds
September 30, 2010
(Amounts in Thousands)
ASSETS
Cash and Cash Equivalents
Investments
Due from Other Funds
Due from Component Units
Investment Sales Receivable
Accounts Receivable
Due from Other Governments
Taxes Receivable
Interest and Dividends Receivable
Mortgages, Notes, and Loans Receivable
Securities Lending Collateral
Inventory
Restricted Assets
Other Assets
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
Liabilities
Warrants Payable
Investment Purchases Payable
Salaries Payable
Due to Other Funds
Due to Component Units
Accounts Payable
Tax Refunds Payable
Due to Other Governments
Securities Lending Obligation
Deferred Revenue
Amounts Held in Custody for Others
Compensated Absences
Total Liabilities
Fund Balances
Reserved for:
Encumbrances
Inventory
Restricted Assets
Long-term Receivables
Highway Equipment Replacement
Forever Wild Stewardship Account
Alabama Trust Capital
Local Government
Capital Improvement Trust
Permanent Trust Principal
Unreserved, Designated for Capital Projects
Unreserved, Designated for Debt Service
Unreserved, Undesignated, Reported in:
General Fund
Special Revenue Funds
Permanent Funds
Total Fund Balances
TOTAL LIABILITIES AND FUND BALANCES
General
Fund
$ 201,543
-
13,466
5
-
458
3
218,751
44
-
8,604
3,317
-
-
$ 446,191
Education
Trust
Fund
$ 134,338
-
2,556
2
-
92
26
194,220
-
-
5,793
-
-
-
$ 337,027
Alabama
Trust
Medicaid
Fund
Public
Road and
Bridge
Fund
$ 52,710
2,522,278
599,484
-
144,224
16,459
-
-
23,194
-
174,515
-
-
-
$ 3,532,864
$ 81,073
-
7,758
8,241
-
24,905
233,782
-
-
-
3,458
-
-
-
$ 359,217
$ 424,816
39,151
388
1
-
4,494
117,680
26,154
-
-
17,358
25,652
-
-
$ 655,694
$ 1,616
-
55,042
168,106
192
13,413
-
6,792
8,604
108,428
315
804
363,312
$ 3,981
-
7,424
444,044
19
47,039
64,333
8,816
5,793
-
1
103
581,553
$ 0
224,535
-
-
-
172
-
-
174,515
4,056
-
-
403,278
$ 469
-
2,090
31,735
37,772
245,701
-
10
3,458
-
-
18
321,253
$ 2,729
-
22,567
2,875
10
121,028
-
3,404
17,358
-
12,687
236
182,894
2,157
3,317
-
-
-
-
-
-
-
-
-
-
77,405
-
-
82,879
3,033
-
-
-
-
-
-
-
-
-
-
-
-
(247,559)
-
(244,526)
133
-
-
-
-
24,798
3,061,559
8,619
34,477
-
-
-
-
-
-
3,129,586
10,654
-
-
-
-
-
-
-
-
-
-
-
-
27,310
-
37,964
79,187
25,652
-
-
45,585
-
-
-
-
-
-
-
-
322,376
-
472,800
$ 446,191
$ 337,027
$ 3,532,864
$ 359,217
$ 655,694
The Notes to the Financial Statements are an integral part of this statement.
34
Public
Welfare
Trust
Fund
Nonmajor
Governmental
Funds
Total
Governmental
Funds
$ 132,583
-
14,410
546
-
-
1,206
49,023
-
-
5,296
-
-
-
$ 203,064
$ 795
-
21,488
6,865
381
43,808
-
2,456
5,296
35,870
3,178
255
120,392
$ 203,064
4,708
-
-
-
-
-
-
-
-
-
-
-
-
77,964
-
82,672
$ 1,164,736
529,824
57,751
2,909
845
9,983
157,732
326,824
3,214
61
47,242
1,166
61,748
37
$ 2,364,072
$ 2,191,799
3,091,253
695,813
11,704
145,069
56,391
510,429
814,972
26,452
61
262,266
30,135
61,748
37
$ 7,898,129
$ 39,279
681
61,256
46,470
149,556
120,595
-
210,274
47,242
122,324
56,725
719
855,121
$ 48,869
225,216
169,867
700,095
187,930
591,756
64,333
231,752
262,266
270,678
72,906
2,135
2,827,803
43,116
1,166
61,748
208
-
-
-
-
-
45,784
153,318
806
-
1,178,431
24,374
1,508,951
142,988
30,135
61,748
208
45,585
24,798
3,061,559
8,619
34,477
45,784
153,318
806
77,405
1,358,522
24,374
5,070,326
$ 2,364,072
$ 7,898,129
35
STATE OF ALABAMA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
September 30, 2010
(Amounts in Thousands)
Total Fund Balances for Governmental Funds
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds.
Land
Historical Exhibits
Construction in progress
Construction in progress - Infrastructure
Infrastructure
Buildings
Equipment
Intangibles
Accumulated Depreciation - Buildings
Accumulated Depreciation - Equipment
Amortization - Intangibles
280,955
2,657
115,561
5,043,948
12,540,902
1,117,127
589,884
4,437
(466,536)
(344,359)
(399)
Some of the State's revenues will be collected after year-end, but
are not available soon enough to pay for the current period's
expenditures, and therefore are deferred in the funds.
Internal service funds are used by management to charge the costs
of certain activities, such as insurance and information technology,
to individual funds. The assets and liabilities of the internal
service funds are included in governmental activities in the
statement of net assets.
Long-term liabilities are not due and payable in the current period
and therefore are not reported in the funds.
Capital Leases, Notes, and Mortgages
Compensated Absences
Claims and Judgments
Due to Component Units
Other Post-Employment Benefits
(115,771)
(281,427)
(15,299)
(6,032)
(362,625)
Long-term bonded debt is not due and payable in the current period and
therefore is not reported in the funds. Unamortized discounts, unamortized
premiums, unamortized loss, deferred debt financing costs, and interest payable
are not reported in the funds. However, these amounts are included in the
Statement of Net Assets. This is the total effect of these balances on the statement.
General Obligation Bonds Payable
Revenue Bonds Payable
Unamortized Premiums
Unamortized Discounts
Unamortized Loss
Deferred Debt Financing Costs
Accrued Interest Payable
(741,250)
(199,645)
(37,167)
422
7,761
2,625
(8,916)
Net Assets of Governmental Activities
The Notes to the Financial Statements are an integral part of this statement.
36
$5,070,326
18,884,177
256,493
157,342
(781,154)
(976,170)
$22,611,014
37
STATE OF ALABAMA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
Governmental Funds
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Education
Trust
Fund
Alabama
Trust
Medicaid
Fund
Public
Road and
Bridge
Fund
General
Fund
$ 1,023,088
157,326
24,191
24,177
1,549
2,858
1,233,189
$ 5,178,449
46
-
-
275
240
5,179,010
$ 0
-
-
256,476
-
125,132
381,608
$ 0
-
3,411
31
3,968,878
633,494
4,605,814
$ 348,743
144,305
-
2,071
906,036
30,133
1,431,288
8,797
13,386
5,352
457,995
13,462
441,291
2
313,429
-
2,731
153
1,256,598
-
4,689,752
-
39,177
25,127
49,597
-
17,336
-
80
50
4,821,119
-
-
400
-
-
-
-
5,715
-
-
-
6,115
-
-
-
4,372,770
-
-
-
-
-
-
-
4,372,770
-
-
-
-
-
-
1,322,787
-
-
337
98
1,323,222
(23,409)
357,891
375,493
233,044
108,066
108,850
-
-
-
-
-
19
(224,792)
-
-
(115,923)
(139,332)
222,142
69
382
-
-
-
-
-
-
(381,258)
-
-
(380,876)
(22,985)
(221,541)
-
6,104
-
-
-
-
-
-
(203,427)
-
-
(197,323)
178,170
2,951,416
-
113,952
-
-
-
-
-
-
(300,677)
-
-
(186,725)
46,319
(8,355)
-
945
-
-
-
-
-
1,840
(58,817)
-
-
(56,032)
52,034
418,452
2,314
$ 82,879
$ (244,526)
$ 3,129,586
$ 37,964
$ 472,800
REVENUES
Taxes
Licenses, Permits, and Fees
Fines, Forfeits, and Court Settlements
Investment Income
Federal Grants and Reimbursements
Other Revenues
Total Revenues
EXPENDITURES
Current:
Economic Development and Regulation
Education and Cultural Resources
Natural Resources and Recreation
Health
Social Services
Protection of Persons and Property
Transportation
General Government
Capital Outlay
Debt Service - Principal Retirement
Debt Service - Interest and Other Charges
Total Expenditures
Excess (Deficiency) of
Revenues Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Bonds Issued
Refunding Bonds Issued
Capital Leases
Other Debt Issued
Debt Issuance Premiums
Insurance Recovery Proceeds
Transfers Out
Payments to Refunded Bond Escrow Agent
Current Refunding to Bondholders
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, October 1, 2009, as Restated
Increase (Decrease) in Inventory
Fund Balances, September 30, 2010
The Notes to the Financial Statements are an integral part of this statement.
38
Public
Welfare
Trust
Fund
$ 173,195
479
-
-
1,649,236
38,983
1,861,893
-
-
-
-
1,965,367
-
-
542
-
1,880
1,672
1,969,461
$ 82,672
176,989
-
-
2,322
-
-
479
(73,422)
-
-
106,368
(107,568)
(1,200)
83,872
-
Nonmajor
Total
Governmental
Governmental
Funds
Funds
$ 1,351,033
362,807
122,764
30,404
2,780,147
367,420
5,014,575
$ 8,074,508
664,963
150,366
313,159
9,306,121
1,198,260
19,707,377
195,667
1,724,644
177,635
1,259,700
346,372
623,906
237,453
717,055
42,525
45,465
50,699
5,421,121
204,464
6,427,782
183,387
6,129,642
2,350,328
1,114,794
1,560,242
1,054,077
42,525
50,493
52,672
19,170,406
(406,546)
536,971
840,256
110,000
112,030
-
62,136
20,746
1,127
(350,397)
(74,415)
(52,610)
668,873
262,327
1,246,600
24
1,247,478
110,000
112,030
2,322
62,136
20,746
3,465
(1,592,790)
(74,415)
(52,610)
(161,638)
375,333
4,692,586
2,407
$ 1,508,951
$ 5,070,326
39
STATE OF ALABAMA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Net Change in Fund Balances for Governmental Funds
Governmental funds report capital outlay as expenditures. However, in the Statement of Activities,
the cost of those assets is allocated over their estimated useful lives as depreciation expense.
This is the amount by which capital outlays exceeded depreciation in the current period.
Capital Outlay
Depreciation Expense
446,570
(75,490)
In the Statement of Activities, only the gain (loss) on the sale of assets is reported, whereas in the
governmental funds, the proceeds from the sale increase financial resources. Thus, the change
in net assets differs from the change in fund balance by the cost of the assets sold.
Some capital additions were financed through capital leases. In the governmental funds, a capital
lease arrangement is considered a source of financing, but in the statement of net assets, the
lease obligation is reported as a liability.
In the Statement of Activities, the change in the balance of inventories is expensed, whereas in
the governmental funds, the change in the balance of inventories is adjusted to reserved
fund balance.
Revenues in the Statement of Activities that do not provide current financial resources are not
reported as revenues in the funds.
Internal service funds are used by management to charge the costs of certain activities, such as
insurance and information technology, to individual funds. The net revenue (expense) of the
internal service funds is reported with governmental activities.
Capital assets reassigned to internal service funds from the general government are reported in
internal service funds as transfers in, but in the Statement of Activities such interfund
activity is eliminated.
Long-term debt principal repayment is an expenditure in the governmental funds, but the repayment
reduces long-term debt in the Statement of Net Assets.
Bond proceeds
Bond premium
Repayment of bond principal
Current refunding to bondholders
Payments to Refunded Bond Escrow Agent
Other debt proceeds
Repayment of other debt principal
Accrued interest
(222,030)
(20,746)
44,885
52,610
74,415
(62,136)
166
6,231
Certain expenditures are reported in the funds. However, they either increase or decrease long-term
liabilities reported on the Statement of Net Assets and have been eliminated from the Statement
of Activities.
Capital lease payments
Compensated absences payments
Other post-employment benefit payments
Claims and judgments
Other debt payments
Change in Net Assets of Governmental Activities
The Notes to the Financial Statements are an integral part of this statement.
5,606
3,508
(94,418)
6,248
1,944
40
$375,333
371,080
(10,894)
(2,322)
2,407
(10,798)
12,579
(12)
(126,605)
(77,112)
$533,656
41
STATE OF ALABAMA
STATEMENT OF NET ASSETS
Proprietary Funds
September 30, 2010
(Amounts in Thousands)
Business-type Activities – Enterprise Funds
Unemployment
Compensation
Trust
State
Port
Authority
Alabama
College
System
Alcoholic
Beverage
Control
Board
Nonmajor
Enterprise
Funds
ASSETS
Current Assets
Cash and Cash Equivalents
Investments, Short-term
Due from Other Funds
Due from Component Units
Accounts Receivable
Due from Other Governments
Interest and Dividends Receivable
Securities Lending Collateral
Inventory
Other Current Assets
Total Current Assets
Noncurrent Assets
Investments, Long-term
Due From Other Funds, Noncurrent
Due From Component Unit, Noncurrent
Other Noncurrent Assets
Capital Assets, Net of Accumulated Depreciation
Capital Assets Not Depreciated
Total Noncurrent Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Warrants Payable
Salaries Payable
Due to Other Funds
Due to Component Units
Accounts Payable
Interest Payable
Due to Other Governments
Claims Payable
Unearned Revenue
Funds Held in Escrow
Compensated Absences
Securities Lending Obligation
Notes and Capital Leases Payable
Revenue Bonds Payable
Total Current Liabilities
Noncurrent Liabilities
Claims Payable
Unearned Revenue, Noncurrent
Compensated Absences
Other Post-employment Benefits
Notes and Capital Leases Payable
Revenue Bonds Payable
Other Long-term Liabilities
Total Noncurent Liabilities
TOTAL LIABILITIES
NET ASSETS
Invested in Capital Assets, Net of Related Debt
Restricted for:
Permanent - Expendable
Permanent - Non-expendable
Debt Service
Capital Projects
Unrestricted
TOTAL NET ASSETS
$ 131,860
-
49
-
4,107
-
-
3
-
-
136,019
$ 7,559
14,565
-
-
27,872
931
-
-
4,725
9,616
65,268
$ 275,345
135,485
-
-
84,383
-
-
-
8,975
-
504,188
$ 28,260
-
47
-
525
-
-
1,214
26,254
-
56,300
$ 11,404
104
-
-
47
-
-
11
822
300
12,688
-
-
-
-
-
-
0
136,019
-
-
-
-
5,076
-
283,671
-
-
75
-
3
-
-
288,825
-
-
-
-
-
-
-
0
288,825
-
25,501
-
-
5,244
553,861
82,083
666,689
731,957
-
3,664
-
-
8,995
7,040
-
681
-
-
-
-
-
7,525
27,905
2,079
540
-
7,198
-
356,329
20,265
386,411
414,316
269,303
17,244
-
-
11,935
744,091
114,594
887,864
1,392,052
-
-
-
-
32,095
-
-
-
78,552
11,545
2,308
-
2,765
15,475
142,740
-
-
17,450
-
7,098
258,780
178
283,506
426,246
604,816
-
-
-
90
4,051
-
4,141
60,441
69
3,823
18,596
2,426
30,220
-
1,157
-
-
-
58
1,214
-
-
57,563
-
-
6,570
9,767
-
-
-
16,337
73,900
4,051
-
-
-
-
2,706
2,630
5,336
18,024
-
28
641
26
142
-
3
3,700
401
-
-
11
-
-
4,952
-
-
19
95
1,825
-
-
1,939
6,891
3,511
-
-
-
-
(152,806)
$ (152,806)
-
-
46,740
-
1,598
$ 317,641
48,943
6,970
-
-
305,077
$ 965,806
-
-
-
-
(17,510)
$ (13,459)
-
-
-
-
7,622
$ 11,133
The Notes to the Financial Statements are an integral part of this statement.
42
Governmental Activities
Total
Enterprise
Funds
Internal
Service
Funds
42,745
-
-
17,269
1,304,709
199,307
1,564,030
2,338,493
$ 454,428
150,154
96
-
116,934
931
-
1,228
40,776
9,916
774,463
48,943
6,970
46,740
-
143,981
$ 1,128,315
69
7,515
19,237
2,452
76,528
7,040
284,831
4,381
78,953
11,620
2,366
1,228
2,765
23,000
521,985
2,079
540
24,039
17,060
8,923
615,109
20,443
688,193
1,210,178
881,681
$ 47,267
57,827
15,390
586
2,057
-
142
1,499
9,426
10,629
144,823
85,249
9,286
1,312
794
44,548
30,234
171,423
316,246
322
2,640
1,367
328
7,684
-
41
10,613
-
-
9
1,499
326
7,655
32,484
48,669
-
4,703
5,173
1,017
66,079
779
126,420
158,904
6,537
-
-
-
6,924
143,881
$ 157,342
43
STATE OF ALABAMA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS
Proprietary Funds
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Business-type Activities – Enterprise Funds
Unemployment
Compensation
State
Port
Trust
Authority
Alabama
College
System
Alcoholic
Beverage
Control
Board
Nonmajor
Enterprise
Funds
OPERATING REVENUES
Charges for Goods and Services
Premiums and Contributions
Rents and Leases
Total Operating Revenues
OPERATING EXPENSES
Salaries, Wages, and Benefits
Utilities and Communications
Professional Services
Supplies, Materials, and Operating Expenses
Interest
Depreciation
Claims and Benefits
Operations and Maintenance
General and Administrative
Other
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES)
Taxes
Grants
Investment Income
Other Nonoperating Revenues
Interest Expense
Other Nonoperating Expenses
Total Nonoperating Revenues (Expenses)
Income (Loss) Before Contributions and Transfers
Capital Contributions
Contributions to Endowments
Special Items
Transfers In
Transfers Out
Increase (Decrease) in Net Assets
Total Net Assets, October 1, 2009, as Restated
Total Net Assets, September 30, 2010
$ 0
402,008
-
402,008
$ 106,460
-
-
106,460
$ 179,677
-
-
179,677
$ 248,845
-
-
248,845
$ 33,222
14,471
621
48,314
-
-
-
-
-
-
1,316,570
-
-
-
1,316,570
-
-
-
1,987
-
27,441
-
59,641
16,566
-
105,635
487,542
26,983
-
176,981
11,393
33,949
-
-
-
143,157
880,005
48,619
2,874
4,446
182,947
-
3,288
-
-
-
11,827
254,001
484
200
372
22,852
-
264
21,368
-
-
9
45,549
(914,562)
825
(700,328)
(5,156)
2,765
-
784,981
-
9,139
-
(6,488)
787,632
-
102
(1,045)
14,000
(12,640)
(5,277)
(4,860)
-
391,385
3,570
7,043
-
(17,128)
384,870
10,558
250
-
4,414
-
-
15,222
(126,930)
(4,035)
(315,458)
10,066
-
-
-
5,755
(9,366)
5,598
-
(9,147)
53
(54)
(130,541)
(22,265)
(7,585)
325,226
26,211
102
-
361,511
-
72,366
893,440
-
-
-
379
(13,441)
(2,996)
(10,463)
3,901
119
47
197
(91)
-
4,173
6,938
-
-
-
-
(9,687)
(2,749)
13,882
$ (152,806)
$ 317,641
$ 965,806
$ (13,459)
$ 11,133
The Notes to the Financial Statements are an integral part of this statement.
44
Governmental Activities
Total
Enterprise
Funds
Internal
Service
Funds
$ 568,204
416,479
621
985,304
536,645
30,057
4,818
384,767
11,393
64,942
1,337,938
59,641
16,566
154,993
2,601,760
(1,616,456)
14,459
1,176,837
2,572
34,793
(12,731)
(28,893)
1,187,037
(71,505)
1,199,820
$ 1,128,315
31,809
102
(9,147)
367,698
(32,548)
(429,419)
$ 68,768
52,048
18,346
139,162
33,618
22,120
11,716
40,993
3,231
5,844
17,674
-
-
6,913
142,109
(2,947)
-
84
5,051
412
(102)
(145)
5,300
2,353
-
-
-
10,390
(164)
12,579
144,763
$ 157,342
45
STATE OF ALABAMA
STATEMENT OF CASH FLOWS
Proprietary Funds
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Business-type Activities – Enterprise Funds
Unemployment
Compensation
Trust
State
Port
Authority
Alabama
College
System
Alcoholic
Beverage
Control
Board
$ 401,489
-
1,041,327
7,052
9,139
-
-
-
(1,044)
-
-
(1,325,398)
132,565
$ 105,281
-
-
-
-
-
(50,735)
(30,804)
-
-
-
-
23,742
$ 148,468
-
148,916
-
27,028
-
(203,328)
(487,543)
-
-
(143,646)
-
(510,105)
$ 245,813
23
-
-
15,416
(164,666)
(20,779)
(46,049)
-
(1,768)
(1,937)
-
26,053
5,755
-
(6,052)
(9,198)
(9,495)
-
-
-
-
-
-
-
0
-
608
-
-
608
123,678
8,182
131,860
-
-
-
-
-
0
15,100
5,826
5,758
(30,480)
(7,165)
(14,809)
-
(25,770)
7,865
1,111
(10)
(6,220)
2,746
718
6,841
7,559
-
254,781
340,907
(181)
-
595,507
19,033
27,089
242
(79,336)
(16,450)
(12,361)
(253)
(62,036)
61,099
1,472
(57,436)
-
5,135
28,501
246,844
275,345
-
-
445
-
(10,890)
(10,445)
-
-
18
(1,441)
-
-
-
(1,423)
-
-
-
-
0
14,185
14,006
28,191
69
Nonmajor
Enterprise
Funds
$ 52,238
8
-
-
309
(23,129)
(21,537)
(465)
-
(5)
-
-
7,419
-
-
-
(9,689)
(9,689)
-
-
101
(490)
(71)
(91)
-
(551)
-
47
(104)
-
(57)
(2,878)
14,282
11,404
-
$ 131,860
$ 7,559
$ 275,345
$ 28,260
$ 11,404
Cash Flows from Operating Activities:
Receipts from Customer & User Charges
Receipts from Interfund Services
Receipts from Operating Grants
Receipts from Interfund Reimbursements
Receipts from Other Operating Activities
Payments for Goods Held for Resale
Payments for Other Goods & Services
Payments for Employees Services
Payments for Taxes, Fines, Penalties, & Similar Fees
Payments for Interfund Services
Payments for Other Operating Activities
Payments for Claims
Net Cash Provided by (Used In) Operating Activities
Cash Flows from Noncapital Financing Activities:
Receipts from Noncapital Financing Grants & Donations
Transfers from Other Funds for Noncapital Financing
Payments for Noncapital Financing Grants & Donations
Transfers to Other Funds for Noncapital Financing
Net Cash Provided By (Used In)
Noncapital Financing Activities
Cash Flows From Capital & Related Financing Activities:
Proceeds from Revenue Bonds & Other Capital Debt
Receipts from Capital Grants & Contributions
Receipts from Sale of Capital Assets & Insurance Proceeds
Payments to Acquire, Construct, & Improve Capital Assets
Principal Paid on Revenue Bonds & Other Capital Debt
Interest Paid on Revenue Bonds & Other Capital Debt
Bond Issuance Cost
Net Cash Provided by (Used in)
Capital and Related Financing Activities
Cash Flows From Investing Activities
Receipts from Sales & Maturities of Investments
Receipts from Interest & Dividends on Investments & Loans
Purchase of Investments
Collateral on interest rate swap
Net Cash Provided By (Used In) Investing Activities
Net Increase (Decrease) In Cash and Cash Equivalents
Cash Balance as Restated, October 1, 2009
Cash Balance, September 30, 2010
Add: Warrants Payable
Cash and Cash Equivalents,
as Reported on Balance Sheet
The Notes to the Financial Statements are an integral part of this statement.
46
Governmental Activities
Total
Enterprise
Funds
Internal
Service
Funds
260,536
341,352
(6,233)
(29,777)
565,878
$ 953,289
31
1,190,243
7,052
51,892
(187,795)
(296,379)
(564,861)
(1,044)
(1,773)
(145,583)
(1,325,398)
(320,326)
$ 454,428
34,133
32,915
6,119
(111,747)
(23,686)
(27,261)
(253)
68,964
3,238
(57,550)
(6,220)
8,432
164,204
290,155
454,359
69
(89,780)
$ 35,752
106,468
-
-
4,307
(13,963)
(62,454)
(32,439)
(168)
(5,443)
(4,872)
(20,630)
6,558
-
9,718
-
(148)
9,570
29,125
-
315
(4,196)
(7,140)
(31,253)
-
(13,149)
176,703
2,888
(214,634)
-
(35,043)
(32,064)
79,009
46,945
322
$ 47,267
Continued on next page...
47
STATE OF ALABAMA
STATEMENT OF CASH FLOWS (Continued from Previous Page)
Proprietary Funds
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Business-type Activities – Enterprise Funds
Unemployment
Compensation
State
Port
Trust
Authority
Alabama
College
System
Alcoholic
Beverage
Control
Board
Nonmajor
Enterprise
Funds
$ (914,562)
-
(1,500)
-
-
-
-
-
-
254,576
-
-
-
-
-
-
-
-
-
-
-
-
794,051
-
1,047,127
$ 132,565
Reconciliation of Operating Income (Loss) to Net Cash
Provided (Used) by Operating Activities:
Operating Income (Loss)
Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided by Operating Activities:
Due from Other Funds
Accounts Receivable
Inventory
Other Assets
Capital Assets
Salaries Payable
Due to Other Funds
Due to Component Units
Accounts Payable
Due to Other Governments
Claims Payable
Amounts Held Pending Distribution
Unearned Revenue
Funds Held in Escrow
Compensated Absences
Other Post-employment Benefits
Other Liabilities
Investment Income
Operating Interest Expense
Depreciation
Amortization Expense
Nonoperating Revenues
Nonoperating Expenses
Total Adjustments
Net Cash Provided (Used) by Operating Activities
Noncash Investing, Capital, and Financing Activities
Increase (Decrease):
Transfers and Donations of Capital Assets
Capital Assets Acquired by Capital Lease or Other Debt
Disposals, Write-offs, and Other Reductions to Capital Asset
Revenue Bond Amortizations and Other Debt Adjustments
Interest Accruals and Other Adjustments
Unrealized Gains (Losses) in Investment Fair Value
Transfers In (Out)
$ 825
$ (700,328)
$ (5,156)
$ 2,765
-
(1,128)
785
111
-
-
-
-
(7,288)
-
-
-
-
-
-
-
(746)
-
-
27,441
279
-
3,463
22,917
-
(14,628)
(715)
(2,085)
-
-
-
-
(1,737)
-
-
-
12,446
(874)
-
-
(750)
-
-
33,949
-
153,224
11,393
190,223
1
(323)
(513)
-
-
(63)
(2,994)
(810)
13,799
802
-
-
-
6
(72)
2,542
-
-
-
3,288
-
15,546
-
31,209
8
9
(15)
-
-
(8)
(95)
-
48
-
197
-
12
-
(1)
24
-
-
-
264
-
4,211
-
4,654
$ 23,742
$ (510,105)
$ 26,053
$ 7,419
-
-
-
-
608
-
-
-
-
-
-
-
2,156
-
-
700
(29,674)
-
-
-
-
303
-
(1,380)
-
-
-
2,567
-
-
(101)
-
-
-
-
The Notes to the Financial Statements are an integral part of this statement.
48
Governmental Activities
Internal
Service
Funds
$ (2,947)
(1,297)
1,221
1,175
(296)
116
(66)
(1,001)
-
(613)
(167)
(126)
349
(381)
192
(144)
1,306
-
56
3,240
5,844
-
117
(20)
9,505
$ 6,558
5,906
1,343
(5,248)
(1,091)
(524)
(1,605)
(656)
Total
Enterprise
Funds
$ (1,616,456)
9
(17,570)
(458)
(1,974)
-
(71)
(3,089)
(810)
259,398
802
197
-
12,458
(868)
(73)
2,566
(1,496)
-
-
64,942
279
967,032
14,856
1,296,130
$ (320,326)
303
700
(31,155)
-
608
2,156
2,567
49
STATE OF ALABAMA
STATEMENT OF FIDUCIARY NET ASSETS
Fiduciary Funds
September 30, 2010
(Amounts in Thousands)
ASSETS
Cash and Cash Equivalents
Investments
Time Deposits
U.S. Treasury Securities
U.S. Agency Securities
State and Local Government Securities
Mortgage Backed Securities
Corporate Stocks
Corporate Bonds
Real Estate
Commercial Paper
International Stocks
International Bonds
Mutual and Money Market Funds
Commingled Funds
Receivables
Due from Other Funds
Employer Contributions Receivable
Member Contributions Receivable
Investment Sales Receivable
Accounts Receivable
Interest and Dividends Receivable
Securities Lending Collateral
Other Assets
Capital Assets, Net of Accumulated Depreciation
Capital Assets Not Depreciated
TOTAL ASSETS
LIABILITIES
Warrants Payable
Investment Purchases Payable
Salaries Payable
Due to Other Funds
Accounts Payable
Due to Other Governments
Claims Payable
Securities Lending Obligation
Deferred Revenue
Amounts Held in Custody for Others
Compensated Absences
Other Post-employment Benefits
TOTAL LIABILITIES
NET ASSETS
Held in Trust for Beneficiaries
Held in Trust for Pension and Other Employee Benefits
TOTAL NET ASSETS
The Notes to the Financial Statements are an integral part of this statement.
50
Pension and
Other Employee
Benefit
Trust Funds
Private-
Purpose
Trust
Funds
Agency
Funds
$ 41,313
$ 5,578
$ 180,736
-
1,384,342
758,860
-
606,554
11,651,792
4,939,570
2,819,301
890,431
3,737,327
-
331,556
-
-
95,207
41,109
1,348,441
15,738
96,687
3,203,312
3,231
151,144
7,620
32,123,535
132
157,368
29,742
202
68,462
79,239
85,079
840
540
28,981
2,190
710,563
7,567
21
-
-
-
356
2,912
999
-
-
-
1,180,771
2,420
41,740
-
8,390
6,120
-
3,810
-
-
-
-
103
-
129
-
-
-
26
-
2,117
-
-
-
245,591
$ 30,663
1,094,023
2,160
2
3,863
5
49,699
3,203,312
2,158
-
4,438
3,288
4,393,611
$ 302
-
22
34
36,677
267
-
999
-
-
50
51
38,402
$ 22,539
-
-
-
619
4,112
-
2,117
-
216,204
-
-
245,591
-
27,729,924
$ 27,729,924
1,142,369
-
$ 1,142,369
-
-
$ 0
STATE OF ALABAMA
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
Fiduciary Funds
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Pension and
Other Employee
Benefit
Trust Funds
Private-
Purpose
Trust
Funds
ADDITIONS
Contributions:
Plan members
Employer
Medicare Part D Retiree Drug Subsidy
Total Contributions
Investment Earnings
Investment Interest and Dividends
Net Increase (Decrease) in Fair Value of Investments
Securities Lending Income
Total Investment Earnings
Less:
Investment Expense
Securities Lending Interest and Fees
Net Investment Income
Other Additions
Licenses and Fees
Miscellaneous
Total Other Additions
Total Additions
DEDUCTIONS
Benefit Payments and Refunds
Administrative Expense
Transfers Out
Total Deductions
Changes in Net Assets
Net Assets Held in Trust
for Beneficiaries, October 1, 2009, as Restated
Net Assets Held in Trust
for Beneficiaries, September 30, 2010
The Notes to the Financial Statements are an integral part of this statement.
$ 755,697
1,601,807
34,753
2,392,257
$ 231,088
-
-
231,088
909,743
1,432,477
19,862
2,362,082
8,053
8,959
2,345,070
3,193
4,164
7,357
26,706
77,667
167
104,540
-
53
104,487
-
259
259
4,744,684
335,834
3,048,810
35,336
1
3,084,147
1,660,537
320,383
7,997
51
328,431
7,403
26,069,387
1,134,966
$ 27,729,924
$ 1,142,369
51
STATE OF ALABAMA
STATEMENT OF NET ASSETS
Component Units
September 30, 2010
(Amounts in Thousands)
ASSETS
Cash and Cash Equivalents
Investments
Due from Primary Government
Due from Component Units
Accounts Receivable
Due from Other Governments
Interest and Dividends Receivable
Mortgages, Notes, and Loans Receivable
Securities Lending Collateral
Inventory
Restricted Assets
Other Assets
Capital Assets, Net of Accumulated Depreciation
Capital Assets Not Depreciated
Deferred Outflows
TOTAL ASSETS
LIABILITIES
Warrants Payable
Salaries Payable
Due to Primary Government
Due to Component Units
Accounts Payable
Interest Payable
Due to Other Governments
Securities Lending Obligation
Unearned Revenue
Amounts Held in Custody for Others
Noncurrent Liabilities:
Due Within One Year
Due In More Than One Year
TOTAL LIABILITIES
NET ASSETS
Invested in Capital Assets, Net of Related Debt
Restricted for:
Permanent - Expendable
Permanent - Non-expendable
Debt Service
Other Purposes
Unrestricted
TOTAL NET ASSETS
Public
School and
College
Authority
$ 631,774
-
15,491
-
3
38,812
-
-
436
-
-
6,684
10,788
-
-
703,988
563
-
-
-
22,377
36,626
7,889
436
-
-
70,180
2,541,889
2,679,960
Mental
Health
$ 96,002
1
173,600
71,289
2
2,018
-
-
3,410
2,093
-
109
22,055
1,590
-
372,169
Housing
Finance
Authority
$ 3,006
754,530
-
-
-
-
13,192
288,625
-
-
-
25,555
-
-
-
1,084,908
747
13,012
9,335
3
53,076
78
3,053
3,410
-
-
1,509
55,049
139,272
-
-
-
-
109
18,104
-
-
15,651
230,329
58,661
458,997
781,851
Water
Pollution
Control
Authority
$ 84,527
87,857
6,032
-
217
510,169
2,262
-
652
-
-
18,069
15
-
-
709,800
-
-
406
-
7
1,662
62,111
652
608
100
University
of
Alabama
$ 371,230
2,636,520
-
-
337,219
-
413
107,958
-
20,881
-
89,794
2,599,524
230,284
-
6,393,823
-
-
-
71,248
277,829
-
24,007
-
285,383
18,207
27,545
295,541
388,632
38,481
1,523,236
2,238,391
10,788
16,482
-
15
1,444,891
-
-
-
-
(1,986,760)
$ (1,975,972)
-
-
-
-
216,415
$ 232,897
-
-
232,097
-
70,960
$ 303,057
-
-
321,153
-
-
$ 321,168
553,392
574,606
-
-
1,582,543
$ 4,155,432
The Notes to the Financial Statements are an integral part of this statement.
52
Auburn
University
$ 70,747
1,141,112
-
-
46,483
-
2,820
52,856
-
4,006
-
5,296
1,035,324
101,609
-
2,460,253
157,634
269,249
-
-
593,699
$ 1,637,403
-
5,441
-
-
46,703
9,124
-
-
140,181
19,296
36,600
565,505
822,850
616,821
University
of
South
Alabama
$ 177,552
432,081
-
-
71,356
-
-
4,701
-
-
26,860
21,066
358,739
114,405
4,171
1,210,931
Public
Education
Employees'
Health Insur
$ 4,907
80,723
-
-
7,948
-
13
-
213
-
-
3,411
-
-
-
97,215
State
Employees'
Health
Insurance
$ 7,768
180,096
748
4
1,041
-
809
-
16,860
-
-
573
2,440
-
-
210,339
Nonmajor
Component
Units
Total
Component
Units
$ 627,937
290,658
871
-
224,593
241,697
4,816
90,370
2,224
8,235
4,656
40,554
667,812
310,872
-
2,515,295
$ 2,075,450
5,603,578
196,742
71,293
688,862
792,696
24,325
544,510
23,795
35,215
31,516
211,111
4,696,697
758,760
4,171
15,758,721
-
-
-
-
28,742
-
-
-
34,500
-
14,334
453,887
531,463
18
194
420
-
223
-
-
213
-
-
76,374
783
78,225
3
385
550
41
5,069
-
-
16,860
9,746
-
55,450
1,276
89,380
287
4,749
2,891
1
57,502
6,342
28,159
2,224
146,306
23,078
1,618
23,781
13,602
71,293
491,637
71,936
125,219
23,795
632,375
291,010
119,522
919,216
1,310,277
498,656
6,815,379
9,060,301
202,240
-
2,440
566,296
2,859,973
81,173
198,445
-
-
197,610
$ 679,468
-
-
-
-
18,990
$ 18,990
-
-
-
-
118,519
$ 120,959
108,103
113,930
164,783
14,261
237,645
$ 1,205,018
900,302
1,156,230
718,033
14,261
1,049,621
$ 6,698,420
53
Mental
Health
$ 865,389
Housing
Finance
Authority
$ 74,207
Water
Pollution
Control
Authority
$ 38,320
University
of
Alabama
$ 3,298,467
College
Authority
$ 380,405
308
-
-
308
28,132
45,492
-
73,624
48,713
-
-
48,713
19,016
29,196
-
48,212
2,079,319
774,087
83,228
2,936,634
(380,097)
(791,765)
(25,494)
9,892
(361,833)
-
43,848
-
-
171,822
-
215,670
7,103
17
52,227
-
790,468
-
849,815
-
62,668
-
-
-
-
62,668
-
6,389
3,413
-
695
-
10,497
-
219,047
10,362
22,888
477,548
3,089
732,934
(164,427)
(1,811,545)
$ (1,975,972)
58,050
174,847
$ 232,897
37,174
265,883
$ 303,057
20,389
300,779
$ 321,168
371,101
3,784,331
$ 4,155,432
STATE OF ALABAMA
STATEMENT OF ACTIVITIES
Component Units
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Public
School and
Expenses
Program Revenues
Charges for Services
Operating Grants and Contributions
Capital Grants and Contributions
Total Program Revenues
Net (Expense) Revenue
General Revenues:
Grants and Contributions Not Restricted to Specific Programs
Investment Earnings
Miscellaneous
Contributions to Permanent Funds and Endowments
Payments from State of Alabama
Extraordinary Items
Total General Revenues, Special Items, and Transfers
Change in Net Assets
Net Assets, October 1, 2009, as Restated
Net Assets, September 30, 2010
The Notes to the Financial Statements are an integral part of this statement.
54
414,433
204,666
47,598
666,697
(160,962)
Auburn
University
$ 827,659
147,211
1,490,192
$ 1,637,403
-
50,797
-
166
257,210
-
308,173
University
of
South
Alabama
$ 608,196
Public
Education
Employees'
Health Insur
$ 789,269
State
Employees'
Health
Insurance
$ 439,229
Nonmajor
Component
Units
Total
Component
Units
$ 1,136,131
$ 8,457,272
411,620
37,225
20,292
469,137
763,255
5
-
763,260
460,769
8
-
460,777
502,261
270,023
23,420
795,704
4,727,826
1,360,702
174,538
6,263,066
(139,059)
(26,009)
21,548
(340,427)
(2,194,206)
-
35,549
24,959
4,909
107,850
-
173,267
-
295
-
-
-
-
295
-
7,905
2
-
-
-
7,907
1
27,696
5,467
4
412,561
-
445,729
7,104
454,211
96,430
27,967
2,218,154
3,089
2,806,955
34,208
645,260
$ 679,468
(25,714)
44,704
$ 18,990
29,455
91,504
$ 120,959
105,302
1,099,716
$ 1,205,018
612,749
6,085,671
$ 6,698,420
55
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ..................................................................................57
A. Reporting Entity........................................................................................................................................................................ 57
B. Government-Wide and Fund Financial Statements................................................................................................................... 64
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation ................................................................... 65
D. Fiscal Year ................................................................................................................................................................................ 67
E. Assets, Liabilities, and Net Assets and Fund Balances.............................................................................................................. 67
F. Proprietary Fund Operating Revenues and Expenses ................................................................................................................ 70
G. New Accounting Pronouncements ............................................................................................................................................ 70
NOTE 2 - FUND BALANCES/NET ASSETS ...............................................................................................................................71
A. Restricted Net Assets ................................................................................................................................................................ 71
B. Restatements.............................................................................................................................................................................. 71
C. Fund Balance/Net Assets Deficits ............................................................................................................................................. 71
NOTE 3 - ASSETS ...........................................................................................................................................................................72
A. Cash Deposits............................................................................................................................................................................ 72
B. Investments................................................................................................................................................................................ 73
C. Investment Risks ....................................................................................................................................................................... 76
D. Securities Lending..................................................................................................................................................................... 82
E. Mortgage-Backed Securities...................................................................................................................................................... 85
F. Capital Assets ............................................................................................................................................................................ 86
G. Derivatives ................................................................................................................................................................................ 89
NOTE 4 - LIABILITIES .................................................................................................................................................................94
A. Commitments............................................................................................................................................................................ 94
B. Claims and Judgments............................................................................................................................................................... 95
C. Conduit Debt ............................................................................................................................................................................. 95
D. Long-term Debt......................................................................................................................................................................... 95
NOTE 5 - INTERFUND ACTIVITY AND INTRA-ENTITY BALANCES............................................................................. 111
A. Interfund Balances .................................................................................................................................................................. 111
B. Balances with Component Units ............................................................................................................................................. 112
C. Balances Between Component Units ...................................................................................................................................... 113
D. Interfund Transfers.................................................................................................................................................................. 114
NOTE 6 - RISK MANAGEMENT ............................................................................................................................................... 115
A. The State Insurance Fund........................................................................................................................................................ 116
B. General Liability Trust Fund................................................................................................................................................... 117
C. State Employee Injury Compensation Trust Fund................................................................................................................... 118
D. State Employees' Insurance Plan............................................................................................................................................. 119
E. Public Education Employees' Health Insurance ...................................................................................................................... 120
F. Alabama Health Insurance Plan............................................................................................................................................... 121
G. Alabama State Port Authority ................................................................................................................................................. 122
NOTE 7 - RETIREMENT PLANS............................................................................................................................................... 122
A. Retirement Systems of Alabama ............................................................................................................................................. 122
B. Other Pension Plans................................................................................................................................................................. 126
NOTE 8 - DEFERRED COMPENSATION ................................................................................................................................ 126
NOTE 9 - POSTEMPLOYMENT HEALTH BENEFITS.......................................................................................................... 127
A. Plan Descriptions .................................................................................................................................................................... 127
B. Summary of Significant Accounting Policies.......................................................................................................................... 128
C. Funding Policy ........................................................................................................................................................................ 128
NOTE 10 - RELATED ORGANIZATIONS................................................................................................................................ 131
NOTE 11 - JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS............................................................ 131
A. Joint Ventures ......................................................................................................................................................................... 131
B. Jointly Governed Organizations.............................................................................................................................................. 131
NOTE 12 - RELATED PARTY TRANSACTIONS.................................................................................................................... 131
NOTE 13 - CONTINGENCIES .................................................................................................................................................... 132
A. Grants...................................................................................................................................................................................... 132
B. Tobacco Settlement ................................................................................................................................................................. 132
C. Litigation ................................................................................................................................................................................. 132
NOTE 14 - DONOR-RESTRICTED ENDOWMENTS ............................................................................................................. 134
NOTE 15 - SUBSEQUENT EVENTS .......................................................................................................................................... 134
56
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
As required by generally accepted accounting principles, these financial statements present the State of Alabama (the primary
government) and its component units. Component units are legally separate organizations ("public corporations") for which the
primary government is financially accountable. Generally, the primary government is financially accountable if it appoints a
voting majority of the organization's board and it can either 1) impose its will on the organization, or 2) there is a financial
benefit/burden relationship. If the primary government does not control the board, it may be financially accountable if the
organization is fiscally dependent on the State. Organizations making up the primary government and its component units are
summarized in the following paragraphs.
1. Primary Government
All state departments, agencies, elected officials, boards, commissions, authorities, committees, halls of fame, educational
institutions, and other state organizations (hereafter referred to as "agencies") which are not legally separate are, for financial
reporting purposes, part of the primary government. All agencies and funds that operate from within the State Treasury, except
those listed later as component units, are part of the primary government. The following non-Treasury agencies operate largely
independent of the control of the State Comptroller, State Auditor, and State Treasurer, but lack the corporate powers to make
them legally separate and are therefore part of the primary government:
Alabama College System
Alabama Fire College
Alabama Technology Network
Athens State University
Aviation Hall of Fame
Cahawba Advisory Committee
Commercial Mobile Radio Service Board
Dental Examiners Board
Dental Scholarships Awards Board
Gorgas Memorial Board
Alabama Industrial Development and Training Institute
Marion Military Institute
Medical Examiners and Licensure Commission
Motor Sports Hall of Fame
Optometric Scholarships Awards Board
Optometry Board
Pharmacy Board
Pilotage Commission
Podiatry Board
School of Fine Arts
St. Stephens Historical Commission
State Port Authority
Women's Hall of Fame
2. Blended Component Units
Blended component units are legally separate but they exist solely to provide services (usually financing) exclusively to the State.
Because of this close relationship, they are blended with and reported as though they are a part of the primary government. All
references in the financial statements or elsewhere in these notes to the term "primary government" will encompass both the
primary government and the blended component units.
The following blended component units were created for the purpose of financing capital expenditures for the State. Each issues
revenue bonds that are limited obligations of the component unit. Their boards consist of state officials and specific state revenues
are pledged for bond repayment. Those marked with a † are currently inactive and had no financial balances or activity in the past
fiscal year.
57
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
Agriculture Markets and Coliseum Authority †
Corrections Institution Finance Authority
Federal Aid Highway Finance Authority
Highway Authority †
Industrial Access Road and Bridge Authority †
Toll Road, Bridge and Tunnel Authority †
Judicial Building Authority
Alabama Trade School and Junior College Authority †
Public Health Care Authority
Gulf State Park Authority†
The Building Renovation Finance Authority has the same characteristics as those in the previous paragraph, but has the added
responsibility of operating, maintaining, and renting buildings in the capitol complex that are occupied by state departments.
The State Parks System Improvement Corporation renovates, improves, maintains, and constructs assets belonging to the State
Parks System. The six members of the Corporation are state officials.
The Forensic Science Bond Authority has the power to acquire, construct, and equip laboratories and other facilities for the State
Department of Forensic Sciences. The four members of the Authority are state officials. The Authority had no financial activity
in the past fiscal year.
The Alabama State Parking Deck Authority has the authority to sell bonds, operate, maintain, and rent space in a parking deck on a
block in the capitol complex. The Authority has remained inactive since the enabling legislation was passed.
The Educational Television Foundation Authority exists to receive, invest, and expend donated moneys for the purpose of
promoting the growth and development of educational television. The Authority consists of thirteen members who are appointed
by the Alabama Public Television Commission. As a non-profit public corporation, the Authority provides financing flexibility
that the Commission, as part of the primary government, would not otherwise have.
3. Discretely Presented Component Units
Discretely presented component units are organizations, which are legally separate and do not exist to provide services exclusively
to the primary government. Providing services to the citizens of the state is not considered the same as providing services to the
primary government institution. Financial information for discretely presented component units is segregated on the financial
statements and the notes in the "Component Unit" columns in order to emphasize that they are legally separate.
Most of the discretely presented component units have boards that are controlled by the primary government through the
appointment of a majority of the board members. The State has been determined to be financially accountable for each
organization because it can impose its will on each organization. Unless otherwise noted, financial accountability for each
organization described below exists at least in the ability of the State to modify the component unit's budget. Other manifestations
of financial accountability may also exist.
For discretely presented component units whose boards are not controlled by the State, the organization has been determined to be
fiscally dependent on the State. Unless otherwise noted, fiscal dependency exists at a minimum in the State’s ability to modify the
component unit’s budget. Other manifestations of fiscal dependency may also exist.
When audited financial statements for a discretely presented component unit exist, the address at which such financial statements
can be obtained is included in the following paragraphs describing each component unit. For all other discretely presented
component units, complete financial statements may be obtained from the State of Alabama, Office of State Comptroller, RSA
Union Building, Suite 206, Montgomery, AL 36130-2602.
The Water Pollution Control Authority operates a revolving loan fund to aid municipalities in financing the construction of
wastewater treatment facilities. A five-member board of directors made up of ex officio members governs the Authority. Audited
financial statements of the Authority may be obtained from the Alabama Department of Environmental Management, 1400
Coliseum Boulevard, Montgomery, AL 36130.
58
The Alabama Drinking Water Finance Authority operates a revolving loan fund to aid local governments in financing the
construction of sanitary drinking water facilities. A five-member board of directors made up of ex officio members governs the
Authority. Audited financial statements of the Authority may be obtained from the Alabama Department of Environmental
Management, 1400 Coliseum Boulevard, Montgomery, AL 36130.
The Department of Mental Health provides mental health services to the people of Alabama. The Governor of the State and the
commissioner of the Department constitute a public corporation and are advised by a sixteen-member board of trustees. The
commissioner and ten of the board members are appointed at the discretion of the Governor. The Mental Health Finance
Authority exists to provide financing services to the Department, is therefore a blended component unit of the Department, and is
included in all amounts reported for Mental Health.
The Crime Victims Compensation Commission awards compensation for economic losses arising from criminal conduct and
works to change laws to benefit crime victims. The Commission consists of three members who are appointed by the Governor.
The Tennessee Valley Exhibit Commission was created to operate a public exhibit based primarily on the history of and ongoing
activities of the Tennessee Valley Authority and various other public entities involved in energy research and development. The
sixteen-member Commission is appointed by the Governor. The building which housed the exhibit has been sold and the board is
no longer actively operating but it has not been legally dissolved by the legislature.
The State Industrial Development Authority issues bonds and uses the proceeds to make grants to local industrial development
boards. All members of the Authority are elected or appointed state officials.
The Alabama Education Foundation encourages donations of money for local school systems and invests the money for the benefit
of each local system. The Foundation is governed by a twelve-member board that is made up of state officials and other
individuals appointed by state authorities.
The Supercomputer Authority operates a supercomputer for the use of educational and governmental research institutions, private
businesses, and individuals. The eleven directors of the Authority are appointed by state officials.
The Public Education Employees’ Health Insurance Board operates a health insurance plan for employees of public school
systems, state junior colleges, colleges, universities, and related education administrative employees. The State does not appoint a
majority of the Board but the Board is fiscally dependent on the State. Audited financial statements of the board may be obtained
at 201 South Union Street, Montgomery, AL 36104-0001.
The State Employees’ Insurance Board operates health insurance plans for state employees and for employees of local
governments. The State does not appoint a majority of the Board but the Board is fiscally dependent on the State. Audited
financial statements of the board may be obtained at Suite 200, 201 South Union Street, Montgomery, AL 36104.
The boards of the four-year colleges of the State, except for the University of Alabama, are appointed by the State. Those colleges
are: Alabama A&M University, Alabama State University, Auburn University, Jacksonville State University, University of
Montevallo, University of West Alabama, University of North Alabama, University of South Alabama, and Troy University. The
University of Alabama board of trustees is not controlled by the State, but the University is subject to budgetary control by the
State. The Alabama Shakespeare Festival, Inc., the Crimson Tide Foundation, the Southern Research Institute, UAB Research
Foundation, and Triton Health Systems, L.L.C. are blended component units of the University of Alabama, therefore, are included
in all amounts reported for the University.
In addition to the blended component units, there are other legally separate, tax exempt organizations that are discretely presented
component units of the universities. These organizations generally exist to raise funds to benefit a specific university. Although
the university may not control the timing or amount of receipts from these foundations, the majority of resources that the
foundations hold and invest are restricted to benefit the activities of the universities by the donors. Because the resources are held
for the benefit of the universities, the foundations are considered the discretely presented component units of the universities and
are included in each of the universities’ financial statements. For the University of Alabama, the University’s discretely presented
component units are The National Alumni Association of The University of Alabama, The Capstone Foundation, The 1831
Foundation, The University of Alabama Law School Foundation, and The University of Alabama Huntsville Foundation. For
Alabama State University, the Alabama State University Trust for Educational Excellence is a component unit. For Auburn
University, the University’s component units are The Auburn University Foundation, The Tigers Unlimited Foundation, and
59
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
Auburn Alumni Association. The University of Montevallo Foundation, Inc. is a component unit of the University of Montevallo
and is included in the amount reported for Montevallo. The University of South Alabama has three component units, the
University of South Alabama Foundation, the University of South Alabama Health Services Foundation, and the USA Research
and Technology Corporation. The Troy University Foundation is a component unit of Troy University. Jacksonville State
University’s component unit is Jacksonville State University Foundation, Inc. For the University of North Alabama, the
University of North Alabama Foundation is a component unit and is included in the amount reported for North Alabama.
Complete financial statements for the universities which are audited by other auditors may be obtained at the following addresses:
Chief Fiscal Officer, University of South Alabama, Business Office AD 380, Mobile, AL 36688-0002; Office of the Vice
President for Business and Finance, Alabama A&M University, P.O. Box 369, Normal, AL 35762; Vice-President for Financial
Affairs, University of Alabama at Tuscaloosa, P.O. Box 870136, Tuscaloosa, AL 35487-0136; Office of Accounting and Financial
Reporting, The University of Alabama in Huntsville, 301 Sparkman Drive, Huntsville, AL 35899; Vice President for Financial
Affairs and Administration, University of Alabama at Birmingham, AB 1030, 1530 3rd Avenue South, Birmingham, AL 35294-
0110; Director of Financial Reporting, Auburn University, 321 Ingram Hall, Auburn University, AL 36849-5161; Comptroller,
Station 6061, University of Montevallo, Montevallo, AL 35115-6000; Vice President for Fiscal Affairs, Alabama State University,
915 S. Jackson Street, Montgomery, AL 36104.
The Alabama Institute for the Deaf and Blind (AIDB) is an educational institution governed by a fourteen-member board, twelve
of whom are appointed by the Governor. The Alabama Institute of Deaf and Blind Foundation, Inc. is a component unit of AIDB
and is included in the amount reported.
The Marine Environmental Sciences Consortium provides educational programs in marine sciences for the graduate and
undergraduate level and conducts research in marine sciences. The board of directors is composed of the chief executive officers
of the member institutions.
The Alabama Public School and College Authority issues bonds and uses the proceeds to fund capital construction projects in the
local school systems. The Governor, the finance director, and the state superintendent of education constitute the Authority.
The Tombigbee Valley Development Authority consists of six state officials who oversee the development of improvements along
the Tombigbee River.
The Higher Education Loan Corporation provides Alabama lending institutions with a secondary market for student loans made
under the federal guaranteed student loan program. Audited financial statements may be obtained from the Alabama Commission
on Higher Education, P.O. Box 302000, Montgomery, AL 36130-2000.
The U.S.S. Alabama Battleship Commission consists of eighteen members appointed by the Governor. The Commission operates
a memorial park centered near the historic battleship.
The fourteen-member board of directors of the Housing Finance Authority is appointed by various state officials. The Authority
sells bonds and uses the proceeds to make it possible for lenders to make low interest rate mortgages available to low income home
buyers. The primary government does not affect the Authority's budget, but the legislature has historically limited the Authority's
ability to issue bonds. Audited financial statements may be obtained from the Authority, P.O. Box 230909, 2000 Interstate Park
Drive, Suite 408, Montgomery, AL 36123-0909.
The Alabama Historic Ironworks Commission operates an historic park based on one of the State's early ironworks. Fourteen of
the eighteen members of the commission are appointed by the Governor. Part of the Commission's budget is subject to State
control.
The Space Science Exhibit Commission operates the Alabama Space and Rocket Center along with the Space Camp. All eighteen
members of the Commission are appointed by the Governor and part of the Commission's budget is subject to State approval.
Audited financial statements may be obtained from the Commission at the Alabama Space and Rocket Center, P. O. Box 070015,
Huntsville, AL 35807-7015.
The Coosa Valley Development Authority oversees developments and improvements along the Coosa River. Six of the seven
members of the Authority are state officials.
60
The Alabama International Airport Authority was created to develop an international airport in the State. The State controls the
appointment of only five of the ten members. All funding for the Authority was historically through the General Fund, so the
Authority is subject to full budgetary control. The Authority has received no funding for a number of years so is currently
inactive.
The Historical Commission is responsible for the preservation of historic sites, buildings, and objects. The twenty-member
Commission is not controlled by the State, but the Commission's budget is subject to State control.
The Choctawhatchee Pea and Yellow Rivers Watershed Management Authority develops and executes plans for water
conservation and usage, flood control and prevention, water pollution control, wildlife habitat protection, and erosion control
within the boundaries of the Authority. The directors of the Authority are elected by local residents, but the Authority is subject to
State budgetary control.
The Agricultural Museum Board exists to preserve and exhibit agricultural artifacts. The Board is not controlled by the State, but
it is subject to State budgetary control.
The Music Hall of Fame operates a public exhibit displaying music memorabilia in honor of Alabamians who have made a lasting
contribution to music. The Hall has both an independent board and is fiscally independent of the State. The Hall is included in
these financial statements because it would be misleading to exclude. The State has some limited budgetary influence and the
State funded the construction of the Hall's facilities with a general obligation bond issue.
The Historic Blakeley Authority preserves the historic site of the town of Blakeley and operates a park on the site. The Authority
has both an independent board and is fiscally independent of the State. The Authority is included in the reporting entity because
the State has some limited budgetary influence and the State provides the majority of the Authority's funding.
The Alabama Incentives Financing Authority was created to fulfill the State's financial commitments made to industries locating
and expanding in the State under the terms of legislation granting certain financial incentives. The Authority is made up of three
state officials and is authorized to issue bonds to fulfill the State's financial commitments.
The Revolving Loan Fund Authority was created to make grants to twelve regional planning commissions for the purpose of
financing local economic development projects. Four of the six members of the Authority are state officials.
The Alabama Twenty-first Century Authority was created to promote economic development and industrial recruitment. The
Authority can issue revenue bonds and pledge part of the proceeds of the settlement of the tobacco industry litigation to finance the
bonds. The Authority is made up of three state officials.
The Agricultural Development Authority promotes development of agriculture in the State by making low interest loans available
to persons engaged in agricultural operations. The seven-member board is made up of three state officials and four other persons
appointed by the State.
The Public Historical Sites and Parks Improvement Corporation renovates, improves, maintains, and constructs State owned public
historical sites and parks not under the jurisdiction of the Department of Conservation and Natural Resources as well as non-State
owned public historical sites and parks. The six members of the Corporation are state officials.
The Red Mountain Greenway and Recreational Area Commission is responsible for preserving, restoring, and promoting as a
greenway, recreational area, or historic site certain land in Birmingham which played an important role in the steel industry of the
State. The fifteen member Commission is not controlled by the State, but the Commission is fiscally dependent on the State.
4. Fiduciary Component Units
Fiduciary component units are required by GAAP to be reported as fiduciary funds of the primary government rather than as
discretely presented component units. In accordance with GAAP, fiduciary funds and component units that are fiduciary in nature
are excluded from the government-wide financial statements.
The Employees’ Retirement System (ERS), a discretely presented component unit, operates several pension (and other employee
benefit) trust funds for the benefit of state and local governmental employees. The ERS is governed by a thirteen-member board
of control, seven of whom are either primary government officials or appointees of the Governor.
61
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
The Teachers’ Retirement System (TRS), a discretely presented component unit, operates a pension plan for the benefit of all
employees of public education institutions throughout the State. It is governed by a fourteen-member board, ten of whom are
elected from among the member employees. The administrative budget of TRS is subject to approval by the State. Audited
financial statements for the TRS and ERS may be obtained from the RSA at 201 South Union Street, P.O. Box 302150,
Montgomery, AL 36130-2150.
5. Excluded Organizations
Other entities have been examined but failed to meet the criteria for inclusion in the State's reporting entity. City and county
boards of education are legally separate organizations whose boards are not controlled by the State. They are fiscally dependent
on both the State and local government. It is more appropriate that they be included in a local government's reporting entity.
The Elk River Development Agency, Bear Creek Development Authority, and Cahaba Trace Commission are legally separate
organizations whose boards are not controlled by the State nor are they fiscally dependent on the State. All three of these
organizations are excluded. The many local soil and water conservation districts are legally separate organizations which have
independent boards and are fiscally independent. In keeping with their independence, they are excluded from this report.
6. Sources of Information
The majority of state organizations, whether primary government or component unit, conduct their financial operations from the
State Treasury through the State's central accounting system under the supervision and review of the State Comptroller, State
Treasurer, and State Auditor. The source of information on these agencies is the State's central accounting system. For these
agencies, the recording of cash, warrants payable, encumbrances, salaries payable, compensated absences, most investments, most
short-term payables, most revenues, and most expenditures/expenses are controlled by the State Comptroller and/or the State
Treasurer and are therefore subject to extensive scrutiny. Accruals of revenues, a few accruals of expenditures/expenses, and all
other accounts, such as depreciation, capital assets, inventories, and capital leases, generally are based on data provided by the
individual agencies. The data provided by the agencies are reviewed and recorded once a year and are believed to be materially
correct even though they are not generally subject to extensive scrutiny by the State Comptroller, State Treasurer, or State Auditor.
There are some organizations and funds which meet the criteria for inclusion as part of the reporting entity even though they have
the authority to conduct their financial operations through bank accounts and accounting systems outside the State Treasury,
independent of the direct daily control of the State Comptroller, State Treasurer, and State Auditor. These non-Treasury agencies
are included in the financial statements based on information provided to the State Comptroller once a year by the agency or the
agency's auditors. Whenever possible, the non-Treasury agencies are reported as they appeared in the information submitted to the
State Comptroller. However, corrections or modifications have been made whenever required to comply with generally accepted
accounting principles or wherever necessary to ensure consistent statewide report presentation.
The following non-Treasury agencies and funds are included in this report:
a. Primary Government
Alabama College Education Savings Trust Fund
Alabama College System
Alabama Health Insurance Plan
Alabama Industrial Development Training Institute
Alabama School of Fine Arts
Alabama State Port Authority
Alabama Fire College
Alabama Technology Network
Athens State University
Attorney General Outside Accounts
Aviation Hall of Fame
Blind Vendors Fund
C.C. Smith Trust Fund
Cahawba Advisory Committee
Charlotte Thorn Endowment Fund
Commercial Mobile Radio Service Board
Corrections Bank Accounts and Agency Funds
Corrections Canteen Funds
62
Court System Local Accounts
Dental Examiners Board
Dental Scholarships Awards Board
Department of Human Resources Local Funds and Child Support Funds
Educational Television Foundation Authority
Geological Survey Library Revolving Fund
Gorgas Memorial Board
Hicks Memorial Endowment Fund
High School of Math and Science
Insurance Department Statutory Deposits
Insurance Department Receivership
Juror Certificate Fund
Marion Military Institute
Mary May Eliot Memorial Fund
Medicaid Agency Lien Account
Medical Scholarships Awards Account
Medical Examiners and Licensure Commission
Men’s Hall of Fame Outside Account
Military Department Unit Funds
Motor Sports Hall of Fame
National Guard Canteen Funds
Non-Emergency Transportation
Optometry Board
Optometric Scholarships Awards Board
Peace Officers' Annuity and Benefit Investment Account
Pharmacy Board
Pilotage Commission
Podiatry Board
Public Health Care Authority
Public Health Local Funds
Public Safety Narcotics Funds
Sports Hall of Fame Checking Account
St. Stephens Historical Commission
State Bar Checking Account
State Bar Client Security
State Bar Foundation
State Port Authority Hourly Pension Plan
State Port Authority Railway Pension Plan
Stonewall Jackson Memorial Fund
Student Assistance Initiated Loan Servicing Account
Supreme Court Checking Account
Supreme Court Law Library Checking Account
Unemployment Compensation Funds
Victims Services Fund
W.V. Chambliss Trust Fund
Women's Hall of Fame
Youth Service Student Accounts and Local Funds
b. Discretely Presented Component Units
Alabama Agricultural & Mechanical University
Alabama Drinking Water Finance Authority
Alabama Higher Education Loan Corporation
Alabama Historic Ironworks Commission
63
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
Alabama Housing Finance Authority
Alabama Incentives Financing Authority
Alabama Institute for Deaf and Blind
Alabama State University
Auburn University
Historic Blakeley Authority
Crime Victims’ Compensation Fund
Jacksonville State University
Marine Environmental Sciences Consortium
Mental Health Capital Projects - Bank Account
Music Hall of Fame
Red Mountain Greenway and Recreational Area Commission
Space Science Exhibit Commission and
Space Science Exhibit Finance Authority
Troy University
U.S.S. Alabama Battleship Commission
University of Alabama in Birmingham
University of Alabama in Huntsville
University of Alabama System Office
University of Alabama in Tuscaloosa
University of Montevallo
University of North Alabama
University of South Alabama
University of West Alabama
Water Pollution Control Authority
B. Government-Wide and Fund Financial Statements
1. Government-Wide Financial Statements
Government-wide financial statements include two basic financial statements: the Statement of Net Assets and the Statement of
Activities. The two statements report the State’s governmental activities separately from its business-type activities.
Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues.
Business-type activities are financed in whole or in part by fees charged to external parties for goods or services. Fiduciary funds
and fiduciary-type component units are excluded from the government-wide financial statements.
The Statement of Net Assets presents the reporting entity’s non-fiduciary assets and liabilities, with the difference reported as net
assets. Net Assets are reported in three categories:
Invested in Capital Assets, Net of Related Debt consists of capital assets, net of accumulated depreciation and reduced by
outstanding balances for bonds, notes, and other debt that are attributed to the acquisition, construction, or improvement of those
assets.
Restricted Net Assets result when constraints placed on net asset use are either externally imposed by creditors, grantors,
contributors, and the like, or imposed by law through constitutional provisions or enabling legislation.
Unrestricted Net Assets consist of net assets that do not meet the definition of the two preceding categories. Unrestricted net assets
often are designated, to indicate that management does not consider them available for general operations.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by
program revenues. Direct expenses are those that are clearly identifiable within a specific function. Program revenues include 1)
charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given
function and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular
function. Taxes and other items not meeting the definition of program revenues are reported as general revenue.
64
2. Fund Financial Statements
Separate fund financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the
latter are excluded from the government-wide statements. Major individual governmental funds and major individual proprietary
funds are reported as separate columns in the fund financial statements, with nonmajor funds being combined into a single column.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
1. Measurement Focus and Basis of Accounting
These financial statements are reported in conformity with generally accepted accounting principles (GAAP) unless otherwise
noted on the face of the statement or in the Notes to the Financial Statements. GAAP basis reporting differs considerably in some
ways from the budgetary and cash basis accounting under which the State budgets and operates.
a. Accrual Basis
Under GAAP, the government-wide statements are reported using the economic resources measurement focus and the accrual
basis of accounting, as are the proprietary and fiduciary fund financial statements. Agency funds, however, do not have a
measurement focus. Revenues are recognized and recorded when earned and expenses are recorded when a liability is incurred for
exchange and exchange-like transactions, regardless of the timing of cash flows. For nonexchange transactions, revenues and
expenditures and related assets and liabilities are recognized as required by GASB Statement No. 33. For derived nonexchange
transactions, receivables and revenues are recognized when the underlying exchange has occurred. For imposed nonexchange
transactions, receivables are recognized when an enforceable legal claim has arisen. Revenues are recognized when resources are
required to be used or the first period that use is permitted.
Property taxes are recognized as revenues in the year for which they are levied. For government mandated nonexchange revenues
such as grants, GAAP require the recognition of assets, revenues, liabilities, and expenditures when all eligibility requirements
have been met and (for revenues) resources are available. Agency funds, fiduciary in nature, do not recognize revenues and
expenditures.
The State has elected to exercise paragraph 6 of GASB Statement No. 20, "Accounting and Financial Reporting for Proprietary
Funds and Other Governmental Entities That Use Proprietary Fund Accounting." Statement No. 20, paragraph 6, requires that all
proprietary activities should apply all applicable GASB pronouncements as well as any Financial Accounting Standards Board
(FASB) Statements and Interpretations, Accounting Principles Board (APB) Opinions, and Accounting Research Bulletins (ARBs)
of the Committee on Accounting Procedure (CAP) issued on or before November 30, 1989, unless such FASB, APB, and CAP
pronouncements conflict with or contradict GASB pronouncements. FASB pronouncements issued after November 30, 1989,
even if they modify an applicable FASB, APB, or CAP pronouncement, are not applicable unless adopted by a GASB
pronouncement.
b. Modified Accrual Basis
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified
accrual basis of accounting. Under this focus, only current assets and current liabilities generally are included on the balance
sheet. Revenues are recognized as they become susceptible to accrual; generally when they are both measurable and available.
Revenues are considered to be available when they are collected within the current period or soon enough thereafter to pay
liabilities of the current period. For this purpose, the State generally considers tax revenues and court settlements to be available if
they are collected within sixty days of the end of the fiscal period. Revenues that the State earns by incurring obligations are
recognized in the period when all applicable eligibility requirements have been met and the resources are available. The State
considers revenues earned by incurring obligations to be available if they are collected within sixty days of the end of the fiscal
period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, expenditures
related to debt service, compensated absences, and claims and judgments are recorded only when payment is due and payable.
Under the modified accrual basis of accounting, recognition criteria are different for exchange and nonexchange transactions. For
exchange and exchange-like transactions, revenues and related current assets are recognized when measurable and available to
finance operations during the year or if available to liquidate liabilities existing at the end of the year. Therefore, in governmental
fund financial statements, revenues and the resulting assets are accrued at year-end only if the revenues are earned and the
receivables are expected to be collected in time to pay for liabilities in existence at the end of the period. Expenditures are
recognized when the related fund liability is incurred, except for items that are not expected to be liquidated with expendable
available resources, such as the long-term portion of compensated absences payable and capital lease obligations. Therefore,
expenditures and the related liabilities are accrued at year-end only when they are normally payable from current expendable
65
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
funds. In order to determine which revenues should be accrued, an arbitrary time limit is established. Revenues are recognized
when measurable and available. The State uses sixty days after fiscal year end as the time limit for the accrual of revenues. For
nonexchange transactions, revenues and expenditures and related assets and liabilities are recognized as required by GASB
Statement No. 33. For income taxes, general sales taxes, utility taxes, insurance premium taxes, general use taxes, gasoline taxes,
motor fuels tax, electric public utility tax, and other derived nonexchange transactions, receivables and revenues are recognized
when the underlying exchange has occurred and the resources are available. For property taxes, business privilege tax, and other
imposed nonexchange transactions, receivables are recognized when an enforceable legal claim has arisen. Revenues are
recognized when resources are required to be used or the first period that use is permitted and the resources are available. For
property taxes, revenues are recognized if received within sixty days; otherwise, deferred revenue is recognized. For federal grants
and other government mandated nonexchange revenues, assets, revenues, liabilities, and expenditures are recognized when all
eligibility requirements have been met and (for revenues) resources are available. For reimbursement-type federal grants,
eligibility requirements are met when recipients incur allowable costs, not when those costs are submitted for reimbursement.
Material accruals are for income taxes, general sales taxes, utility taxes, insurance premium taxes, general use taxes, gasoline
taxes, motor fuels tax, electric public utilities tax, property taxes, business privilege tax, hospital assessment fees, nursing facility
tax, pharmaceutical services tax, federal grants, oil and gas royalties, investment sales receivables, and interest. Also, a one time
receivable for Medicaid reimbursements from the Alabama Hospital Association is accrued.
2. Financial Statement Presentation
a. Major Funds
The State reports six major governmental funds. The General Fund is the State’s primary operating fund. It accounts for all
financial resources except those required to be accounted for in another fund. The Education Trust Fund accounts for the
revenues collected for the support, maintenance, and development of public education in Alabama. The Alabama Trust Fund
consists of income from the sale or lease of rights for offshore exploration and drilling for oil and gas off the Alabama coast.
Investment income is used to support the General Fund, Forever Wild Land Trust, and a variety of capital projects and debt
service. Medicaid accounts for the portion of the Medicaid program that is funded by Federal revenues and other non-State
revenue sources. The Public Road and Bridge Fund accounts for highway construction, maintenance, and operations. The Public
Welfare Trust Fund accounts for the administration of a broad range of social and protective services programs that provide
financial assistance to individuals.
The State reports four major enterprise funds. The Unemployment Compensation Trust accounts for the activities of the federal
unemployment insurance program including employer contributions, Federal Unemployment Trust advances, and benefit claims to
the unemployed. The State Port Authority was created to engage in promoting, developing, constructing, maintaining, and
operating harbors, seaports, and river ports within the State of Alabama. The Alabama College System accounts for the revenues
and expenses of the State’s Community and Technical Colleges, Athens State University, the Alabama Industrial Development and
Training Institute, the Alabama Technology Network, the Alabama Fire College, and Marion Military Institute. The Alcoholic
Beverage Control Board was created to control alcoholic beverages through distribution, licensing, and enforcement.
b. Nonmajor Funds
The State reports a number of nonmajor governmental funds, proprietary funds, and fiduciary funds.
Governmental Fund Types:
Special Revenue Funds include operating fund activities financed by specific revenue sources that are legally restricted for specific
purposes. Examples include public health, education, and economic and community affairs.
Debt Service Funds account for the accumulation of resources for, and the payment of, governmental long-term debt principal and
interest.
Capital Projects Funds account for the acquisition, construction, and improvement of major general governmental capital assets
financed principally by bond proceeds.
Permanent Funds report resources that are legally restricted to the extent that only earnings, and not principal, may be used for
purposes that benefit the government or its citizenry.
Proprietary Fund Types:
Enterprise Funds report the activities for which fees are charged to external users for goods or services such as health insurance.
66
Internal Service Funds provide goods or services primarily to other agencies or funds of the State, rather than to the general public.
Examples include information technology, telecommunications, office building rentals, and the State Motor Pool. In the
government-wide statements, internal service funds are included with governmental activities. Eliminations have been made to
minimize the double counting of internal activity, including internal service fund type activity on the government-wide financial
statements.
Fiduciary Fund Types:
Pension and Other Employee Benefit Trust Funds account for resources that are required to be held in trust for the members and
beneficiaries of the State’s defined benefit pension plans, deferred compensation plan, individual retirement accounts, post-
employment health care plans, and flexible employees’ benefit plans. The defined benefit pension plans include plans for state
employees, state police, some city and county employees, teachers, judges, peace officers, state dock employees, and circuit clerks
of the courts.
Private Purpose Trust Funds account for resources of all other trust arrangements in which principal and income benefit
individuals, private organizations, or other governments. The State’s largest private purpose funds are education related for either
college tuition benefits or local public schools. There are five endowment funds established by private citizens that the State
manages as trustee for local school systems and reports as Local Education Endowments. The Foundation for Local Schools was
established so that the Retirement Systems of Alabama can use its investing expertise to get maximum return on investments for
numerous small local school foundations and trusts.
Agency Funds report assets and liabilities for deposits and investments entrusted to the State as an agent for others. The State has
agency funds that account for some taxes collected, payroll withholdings, child support payments, cash bonds, and other purposes.
D. Fiscal Year
The State fiscal year ends on September 30. One component unit, the Alabama Space Science Exhibit Commission, has the power
to set its own fiscal year (Code of Alabama 1975, Section 41-10-307, as amended). The Commission has set its fiscal year to end
on the last Sunday in September in order to coordinate its accounting period with the weekly cycle of campers. The Commission's
fiscal year for 2010 ended on September 26. The difference in fiscal years had no material effect on the financial statements.
E. Assets, Liabilities, and Net Assets and Fund Balances
1. Cash and Cash Equivalents
Cash and Cash Equivalents, as reported on the financial statements (the government-wide and the fund financial statements), are
under the control of the State Treasurer or other administrative bodies as determined by law. The cash in all funds operating from
the State Treasury is pooled as treasury cash and invested by the State Treasurer. The State Treasurer has statutory authority to
invest treasury cash in demand accounts or time deposit-open accounts with any qualified public depository. The State Treasurer
can also invest up to twenty percent of treasury cash in securities and obligations of the U.S. Treasury or federal agencies for a
period of time that may exceed one year. All of the cash and investments in the State Treasury cash management pool are reported
as cash and cash equivalents because the pool is used essentially as a demand deposit account. Commercial paper is reported as
an investment regardless of the original maturity date. For funds operating outside the State Treasury, cash and cash equivalents
generally include demand deposit accounts, petty cash accounts, and short-term, highly liquid investments with a maturity date of
three months or less when purchased.
2. Receivables
In the government-wide and governmental fund financial statements, the largest receivables are amounts accrued for income taxes,
general sales taxes, utility taxes, insurance premium taxes, general use taxes, and property taxes as required by GASB Statement
No. 33.
The second largest receivables are amounts due from other governments, consisting almost entirely of grants and reimbursements
due from the federal government where collectability is reasonably assured. Accordingly, no allowance for uncollectible accounts
has been established. Amounts due from local governments are not a significant portion of amounts due from other governments.
67
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
The property tax calendar for the State is simple. The levy date, the assessment date, and the lien date are all the same date –
October 1. On October 1, the assessed value of all property is multiplied by the applicable rates to levy the property tax. On that
date, the State has a lien (a legal claim) against the property. The property tax is not due until October 1 the following year. The
property tax is paid in arrears between October 1 and December 31. After December 31, it is delinquent.
The most significant Accounts Receivable is recorded in Medicaid. The Medicaid receivable was for a one-time reimbursement
from the Alabama Hospital Association for the Prepaid Hospital Plan which will be replaced by a new program in fiscal year 2011.
The second most significant Accounts Receivable is recorded in the Alabama Trust Fund for oil and gas royalties earned on natural
gas produced in Alabama’s offshore waters. The primary government has minimal amounts of Notes and Loans Receivable, as
such agreements would constitute an illegal extension of credit by the State for any fund operating from the State Treasury.
Interest and Dividends Receivable includes amounts earned on investments, notes, mortgages, and loans receivable. Investment
Sales Receivable consists of amounts receivable for investments sold but the transaction was not settled before year-end.
For component units, about half of Mortgages, Notes, and Loans Receivable consist of loans made by the Alabama Housing
Finance Authority. The mortgage loans of the Authority are carried at their unpaid principal balances less an allowance for loan
losses. Also included in this category are student loans owed to various Universities and the Alabama Higher Education Loan
Corporation. The loans are reported net of an allowance for uncollectible loans.
Due From Other Governments as reported for the component units consists almost entirely of amounts owed by local
governments. Most of the amount consists of loans made by the Alabama Water Pollution Control Authority and the Drinking
Water Finance Authority. Accounts Receivable as reported for the component units are comprised primarily of amounts owed to
colleges.
3. Interfund Activity and Balances
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are
reported as either Due To Other Funds or Due From Other Funds. Any residual balances outstanding between the governmental
activities and business-type activities are reported in the government-wide financial statements as Internal Balances. Receivables
and payables involving fiduciary funds are presented as accounts payable or receivable on the government-wide Statement of Net
Assets.
Eliminations have been made to minimize the double-counting of internal activity, including internal service fund type activity on
the government-wide financial statements. However, interfund services, provided and used between different functions, have not
been eliminated in order to avoid distorting the direct costs and program revenues of the applicable functions. Operating transfers
between governmental and business-type activities are reported at the net amount on the government-wide financial statements.
In the fund financial statements, transactions for services rendered by one fund to another are treated as revenues of the recipient
fund and expenditures/expenses of the disbursing fund. Reimbursements of expenditures/expenses made by one fund for another
are recorded as expenditures/expenses in the reimbursing fund and as a reduction of expenditures/expenses in the reimbursed fund.
Transfers represent flows of assets between funds of the primary government without equivalent flows of assets in return and
without a requirement for payment.
4. Inventories
Inventories of supplies in governmental fund financial statements are reported at cost using the purchases method. An inventory
asset account is reported on the balance sheet with an offset to Reserved for Inventory. Inventories of materials and supplies on
proprietary fund financial statements are determined by both physical counts and through perpetual inventory systems and are
valued at the lower of cost or market. Valuation methods used on the proprietary and governmental fund financial statements
include first-in first-out, average cost, weighted average, and retail inventory method.
5. Investments
Investments as reported on the Statement of Net Assets include long-term investments. As required by GASB Statement No. 31,
“Accounting and Financial Reporting for Certain Investments and for External Investment Pools”, most investments are recorded
at fair value. Securities traded on national or international exchanges are valued at the last reported sales price at current exchange
rates. Short-term investments are reported at cost, which approximates fair value. Mortgage-backed securities are reported based
on future principal and interest payments discounted at the current interest rate for similar instruments. The fair value of real estate
investments is based on independent appraisals. No investments are recorded at amortized cost.
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6. Restricted Assets
Assets required to be held and/or used as specified in bond covenants, other debt agreements, donor specifications, and court
settlements have been recorded as "Restricted Assets." These assets consist primarily of cash and cash equivalents, U.S. Treasury
obligations and certificates of deposit.
Years
40
25
5-12
10
7. Capital Assets
Capital assets, which include buildings, land, equipment, intangibles, and infrastructure (e.g., roads and bridges), are reported in
the applicable governmental or business-type activities columns in the government-wide financial statements. Most capital assets
are defined by the State as assets with an initial cost of at least $5,000 and have initial useful lives extending beyond a single
reporting period. Software and other intangibles must have an initial cost of at least $100,000. Capitalized assets are recorded at
historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market
value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are
constructed. Capital assets are depreciated using the straight-line method over the following estimated useful lives:
Assets
Buildings
Improvements Other than Buildings
Equipment
Software
Land, infrastructure, construction in progress and historical artifacts are not depreciated. The State has elected to apply the
modified approach to accounting for infrastructure (e.g., roadways, bridges, and tunnels). Under this approach, the infrastructure
assets are not depreciated because the State is committed to maintaining the assets at a minimum condition level that the
Department of Transportation (ALDOT) has determined to be adequate to meet the needs of the citizens. Costs for maintenance
and preservation are expensed in the period incurred. Additions and improvements are capitalized. The ALDOT maintains an
inventory of all infrastructure assets and performs regular condition assessments of those assets to establish that they are in fact
being maintained at or above the condition level established. ALDOT also makes an annual estimate of the cost necessary to
maintain and preserve those infrastructure assets at the target condition level. The cost of infrastructure reported includes
historical costs from 1980 to the present as required by GASB Statement No. 34 as well as historical costs preceding 1980.
Extensive project documentation is required to meet various Federal and State guidelines concerning the construction of
infrastructure. The completeness of this documentation affects the timing of project capitalization. The State capitalizes road and
bridge infrastructure annually when all costs for a project are incurred and all project documentation is satisfactorily completed,
filed and accepted with the appropriate entities. Projects that meet the cost and documentation criteria are closed and appropriate
entries are made to adjust the Infrastructure Construction in Progress and Infrastructure asset accounts annually. Due to the
documentation requirements, there can be substantial time lags between the date a project is put into service on the State’s
roadway network and the date the project is capitalized. A significant portion of Infrastructure Construction in Progress consists of
projects that have been put into service and maintenance costs could have been incurred.
8. Compensated Absences
Employees in permanent positions accrue annual leave at a rate of four hours and 20 minutes to nine hours and 45 minutes semi-
monthly, depending upon their length of service. Upon separation from service, an eligible employee is paid for the actual number
of annual leave days he has earned, up to a maximum of sixty days, with the amount being computed on the basis of his daily pay
rate at time of separation multiplied by the number of days leave due.
Sick leave is accrued at a rate of four hours and 20 minutes semi-monthly. Employees may accumulate up to a maximum of 150
days sick leave. Employees may be compensated for one-half of the maximum accrued sick leave only upon retirement from state
service. The employee must have twenty-five years of service or have attained the age of 60 and have ten years of service to be
eligible to retire. State Troopers must have twenty-five years of service or have attained the age of 52 and have ten years of
service to be eligible to retire. If a state employee in the classified service dies while in active service to the State, the estate of the
deceased employee receives a payment of fifty percent of the accrued and unused sick leave, not to exceed 600 hours, which the
employee was credited with at the time of his or her death.
The monetary value of accumulated annual and sick leave payable upon termination or retirement is included in the government-
wide statement of net assets, proprietary fund financial statements, and fiduciary fund financial statements. In the governmental
fund financial statements, amounts reported are for unused, matured leave amounts payable to employees whose employment was
69
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
terminated by September 30. These amounts are paid to the employees during the first month after the end of the fiscal year so
those actual payments were used to compute the amount payable. Amounts not payable from expendable available resources
(long-term liabilities) are reported in the government-wide Statement of Net Assets.
The liability for compensated absences was computed using salary rates effective at fiscal year end including the employer's share
of social security and Medicare taxes payable and represents annual and sick leave earned up to the allowable ceilings. The sick
leave is calculated separately for vested and non-vested employees. Sick leave is subjected to an actuarially determined
probability multiplier that the employee will remain to retire and collect sick leave. The probability multipliers are as follows:
Vested
0.84
0.77
Non-vested
0.46
0.34
Public Education Employees
State Employees
9. Long-Term Obligations
Long-term debt is recognized as a liability in governmental fund financial statements when due, or when resources have been
accumulated in the debt service fund for payment early in the following year. For other long-term obligations, only that portion
expected to be financed from expendable available financial resources is reported as a liability in governmental fund financial
statements. The remaining portion of such obligations is reported in the government-wide financial statements. Long-term
liabilities expected to be financed from proprietary fund operations are accounted for in those funds in the proprietary fund
financial statements.
10. Net Assets and Fund Balances
As discussed previously, net assets on the government-wide financial statements and the proprietary fund financial statements are
reported in three categories: (1) invested in capital assets, net of related debt; (2) restricted net assets; and (3) unrestricted net
assets. Reservations of fund balance on the governmental fund financial statements indicate that a portion of the fund balance is
not available for appropriation and expenditure or is legally segregated for a specific future use. Fund balance designations are
established to indicate tentative plans for financial resource utilization in a future period. Such designations reflect managerial
plans or intent as distinguished from legally required reserves.
F. Proprietary Fund Operating Revenues and Expenses
Proprietary funds report operating revenues and expenses separately from non-operating items. Operating items generally result
from producing and delivering goods and services that are a normal part of the primary business of the fund. Operating expenses
for enterprise funds and internal service funds include the cost of sales and services, administrative expenses and depreciation on
capital assets. Revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
G. New Accounting Pronouncements
During the current fiscal year, the State implemented the following new accounting pronouncements:
GASB Statement No. 51: Accounting and Financial Reporting for Intangible Assets
GASB Statement No. 53: Accounting and Financial Reporting for Derivative Instruments
GASB Statement No. 58: Accounting and Financial Reporting for Chapter 9 Bankruptcies
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NOTE 2 - FUND BALANCES/NET ASSETS
A. Restricted Net Assets
The Government-wide Statement of Net Assets reports $5 billion of restricted net assets for the primary government, of which
$296 million is restricted by enabling legislation.
B. Restatements
Fund Balances and Net Assets as of October 1, 2009 have been restated for certain accounting changes necessary to conform to
GAAP. No major primary government governmental funds were restated, nor were any fiduciary funds restated. However, fund
balance for The Public Health Care Authority, a Nonmajor Debt Service Fund, was restated by $317,000 from $307,000 to
$624,000 for a receivable not reported in 2009. Internal Service Funds were restated by $2,307,000, primarily because receivables
and capital assets were understated.
Net assets for the Port Authority were restated by $13,912,000 to book a derivative in conjunction with the implementation of
GASB Statement 53. Net assets for the Alabama College System were restated by $3,417,000, the largest portion of which was
$2,405,000 increase in capital assets. Net Assets for nonmajor enterprise funds decreased $1,352,000 while internal service funds
increased by the same amount because a fund was reclassified when it ceased to do business with external users.
On the government-wide financial statements, beginning net assets for governmental activities were restated down from
$22,083,318 to $22,077,358, a decrease of $5,960,000. Included in this restatement was ($13,379,000) in governmental long-term
debt restatements for capital leases which were not reported in the previous year. Governmental capital assets were restated in
total by $5,932,000, of which $777,000 was associated with the implementation of GASB Statement 51.
The Alabama Public School and College Authority, a major component unit, was restated by $75,560,000 from a deficit of
1,735,985,000 to a deficit of 1,811,545,000 as part of the implementation of GASB Statement 53 on accounting for derivatives.
The University of Alabama, a major component unit, was restated down by $64,097,000 because the University of Alabama
Birmingham Hospital incorporated in 2010 the operations of an entity previously considered to be an affiliated organization.
Nonmajor Component Units were restated up $781,000.
The University of South Alabama, a major component unit, was restated down by $8,015,000 resulting from the implementation of
GASB Statement 53 on accounting for derivatives.
C. Fund Balance/Net Assets Deficits
1. Primary Government
The Education Trust Fund, a major governmental fund, had a deficit in unreserved, undesignated fund balance of $247,559,000,
and a total deficit in fund balance of $244,526,000. Tax shortfalls caused the budget of the fund to undergo 9.5 percent proration
in 2010. The fund still owes the Alabama Trust Fund $437.4 million that was borrowed from the Rainy Day Trust Account in
fiscal year 2009 under the provisions of Amendment 803 of the Constitution of Alabama of 1901.
The Unemployment Compensation Trust, a major proprietary fund, had a deficit in unrestricted net assets of $152,806,000. The
deficit is the result of a $283,671,000 advance from the Federal Government which is included in “Due to Other Governments.”
The Alcoholic Beverage Control Board, a major proprietary fund, had a deficit in unrestricted net assets of $17,510,000, with a
total net asset deficit of $13,459,000. The deficits are largely due to the accrual of liabilities for compensated absences, salaries
payable, other post-employment benefits, and profits currently due to other funds. The Board, by law, operates on a cash basis and
is required to distribute 100 percent of its profits.
71
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
The Building Renovation Finance Authority, an internal service fund, had a deficit balance of $5,167,000 in net assets invested in
capital assets, net of related debt. The fund’s major assets are buildings, which have depreciated values that are less than the
principal remaining on the long-term debt associated with them. The fund had overall positive net assets of $8,173,000.
The Flexible Employees’ Benefits Board, an Other Employee Benefit Trust Fund, had deficit net assets of $1,510,000 because of
liabilities to employees for health care and dependent care reimbursements. The fund does not break even until the end of
December because it operates on a calendar year basis.
2. Component Units
The Public School and College Authority, a major component unit, had a deficit in unrestricted net assets of $1,986,760,000
causing a deficit in total net assets of $1,975,972,000. The Authority issues bonds to raise money for grants which are made
primarily to local school systems for the construction and improvement of educational buildings owned by those systems. The
bonds will be repaid with future tax revenues pledged by the primary government.
Alabama Agricultural & Mechanical University, a nonmajor component unit, has a deficit of $7,754,000 in unrestricted net assets,
but overall net assets are a positive $79,611,000.
The Space Science Exhibit Commission, a nonmajor component unit, had a deficit in unrestricted net assets of $6,994,000 and
positive overall net assets of $35,417,000. Nearly all of the Commission’s assets are either restricted or capital assets.
The Incentives Finance Authority, a nonmajor component unit, had a deficit in unrestricted net assets of $101,529,000 with an
overall deficit in total net assets of $92,811,000. The Authority issues bonds to raise money to fund commitments for economic
development grants to industries relocating to Alabama and therefore the Authority accumulates few assets. The resources to pay
the debt will come from future tax revenues pledged by the primary government.
The Historic Ironworks Commission, a nonmajor component unit, had a deficit in unrestricted net assets of $21,000, with positive
total net assets of $3,042,000.
The Revolving Loan Fund Authority, a nonmajor component unit, had a deficit in unrestricted net assets and in total net assets of
$8,387,000. The Authority issues bonds for making grants to Regional Planning and Development Commissions to be utilized as
revolving loans by the grantees. The resources to repay the debt will come from future tax revenues pledged by the primary
government.
NOTE 3 - ASSETS
A. Cash Deposits
The State Treasurer has statutory authority to deposit treasury cash in demand accounts or time deposit - open accounts with any
qualified public depository. The State Treasurer may also invest up to twenty percent of treasury cash in securities and obligations
of the U.S. Treasury or federal agencies for a period of time that may exceed one year. Funds may also be invested in obligations
of the United States or its agencies under a repurchase agreement for a shorter period of time than the maturity date of the security.
Deposits of both the primary government and its component units are entirely insured by Federal depository insurance or protected
under the Security for Alabama Funds Enhancement (SAFE) Program. The Code of Alabama 1975, as amended, requires all State
organizations, including component units, to participate in the SAFE Program. The SAFE Program is a multiple financial
institution collateral pool. The SAFE Program requires State treasury cash to be deposited in a financial institution designated by
the State Treasurer as a qualified public depository. Each qualified public depository is required to pledge collateral in accordance
with the rules established by the SAFE Board of Directors. In the event that a qualified public depository defaults or becomes
insolvent and the pledged collateral is insufficient to satisfy the claims of public depositors, the Code of Alabama 1975, Section
41-14A-9(3) authorizes the State Treasurer to make assessments against the other qualified public depositories in the pool so that
there will be no loss of public funds. Also, all other public funds not managed by the State Treasurer are required to be deposited
in a qualified public depository or placed through a qualified public depository which arranges for the funds to be deposited in
federally insured banks or savings associations so that the funds and accrued interest earned on them are fully insured by the
72
Federal Deposit Insurance Corporation and, at the same time, the qualified public depository receives or is credited with deposits
from other banks or savings associations in an amount equal to or greater than the amount it arranged to be deposited in other
banks and savings associations.
B. Investments
Investments are made in accordance with the statutes creating the various agencies of the State of Alabama. The following
describes the investments made by the major investing agencies of the State:
1. Primary Government
State Treasurer - The State Treasurer may legally invest state funds in obligations of the U.S. Treasury, Federal Land Bank bonds,
Federal Home Loan Bank notes and bonds, Federal National Mortgage Association notes, and debentures or obligations
guaranteed by the U.S. government. Investments in obligations of the United States or its agencies under a repurchase agreement
are allowed. The State Treasurer may also invest in money market mutual funds which invest solely in U.S. government or U.S.
government agency securities.
Alabama Trust Fund – Investments are limited to those authorized by law for the Retirement Systems of Alabama. The
investments authorized for the Retirement Systems are described later in this section.
Prepaid Affordable College Tuition (PACT) Program - The State is responsible for the management of the investments of the
PACT program, although the investments are not property of the State. The funds may be invested in any instrument, obligation,
security or property that constitutes legal investments for investment of public funds in the State, including legal investments of the
State Treasurer and the Alabama Trust Fund that are deemed most appropriate by the PACT Board and may be pooled for
investment purposes with any other investment of the State which is eligible for asset pooling.
Alabama College Education Savings (ACES) Plan – The Board of Trustees administers the program. The Board of Trustees has
entered into a contract with UBT 529 Services (Union Bank), a division of Union Bank and Trust Company. The investment
alternatives are made available through investment portfolios each of which represents a separate, segregated portfolio of
investments in mutual funds. The asset allocations for each portfolio are in consultation with the Program Manager, Union Bank,
and day-to-day administration has been delegated to the State Treasurer.
2. Fiduciary Funds
Retirement Systems of Alabama (RSA) - The RSA administers the Teachers’ Retirement System (TRS), Employees’ Retirement
System (ERS), and Judicial Retirement Fund (JRF). RSA may invest in any types of investments that the Board of Control of each
individual system approves. Each Board is limited only by the "Prudent Man Rule" which requires it to use due care, skill,
prudence, and diligence under the prevailing circumstances that a prudent man acting in a like capacity and familiar with such
matters would use in investing.
Deferred Compensation Plan (RSA-1) – A deferred compensation plan is administered by the Retirement Systems of Alabama
(RSA). The plan is named the Public Employees' Individual Retirement Account/Deferred Compensation Plan, and is commonly
referred to as RSA-1. By law, RSA-1 investments are made under the same rules, regulations, conditions, and guidelines
governing the RSA.
3. Component Units
Alabama Water Pollution Control Authority - The Authority is authorized to invest in (a) any debt securities that are direct or
general obligations of the U. S.; (b) any debt security unconditionally guaranteed (principal and interest) by the U. S.; and (c)
repurchase agreements collateralized by securities of the type described in (a) and (b) above with any commercial bank, of such
broker/dealer subject to the Securities Investors' Protection Corporation jurisdiction or any commercial bank, if such broker/dealer
or bank has an uninsured, unsecured, and unguaranteed obligation rated "Prime-1" or "A3" or better by Moody's Investor Service,
Inc., and "A-1" or "A-" or better by Standard & Poor's Corporation.
Alabama Housing Finance Authority - The Authority is authorized to invest in bonds or other obligations issued or guaranteed by
the U.S. Government, or any agency thereof, or the State of Alabama. In addition, the Authority may invest in interest-bearing
bank and savings and loan association deposits, any obligations in which a State-chartered savings and loan association may invest
its funds, any agreement to repurchase any of the foregoing, or any combination thereof. Each of the trust indentures established
73
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
under the Authority's mortgage revenue bond programs contain further restrictions on the investment of non-expended bond
proceeds; however, each trust indenture must be consistent with the Authority's authorizing legislation with respect to the
definition of eligible investments. The Authority's program investments consist of Government National Mortgage Association
(GNMA) or Federal National Mortgage Association (FNMA) pass-through certificates, all of which are pledged as security for the
mortgage revenue bonds.
Other investments include temporary and debt service reserve funds established under the provisions of various trust indentures,
and investments of the Authority's general and housing assistance funds.
Higher Education Loan Corporation - The bond trust indentures authorize the Corporation to invest bond proceeds only in certain
types of investments including, but not limited to: (1) direct obligations of, or obligations unconditionally guaranteed by, the U.S.
Government; (2) bank demand deposits and certificates of deposit insured by the Federal Deposit Insurance Corporation or fully
secured by obligations with the same characteristics as those described in items (1) above or (3) below; (3) obligations of or
guaranteed by any agency or instrumentality of the U. S. Government; (4) obligations with the same characteristics as those
described in items (1) and (3) above held by the Trustee under written agreement whereby a bank or trust company agrees to
repurchase the obligations, providing that the market value of such obligations, as determined monthly, is always at least equal to
the repurchase prices specified in the agreement; (5) money market funds consisting solely of securities similar to those described
in items (1), (3), and (4) above; (6) guaranteed investment contracts; and (7) any other investments or obligations consented to by
the bond insurance provider.
Investments Made by Colleges and Universities - The colleges and universities invest funds in accordance with the applicable
limits set forth in the gift instruments, Board of Trustees guidelines, or other applicable laws. Certain bond indentures require that
the bond funds invest all amounts in federal securities or eligible certificates. In accordance with GASB Statement No. 31, most
investments are stated at fair value.
74
The State’s investments at September 30, 2010, are as follows:
Investment Types
U S Treasury Strips
Other U S Government Guaranteed Securities
U S Agency Securities
State and Local Government Securities
Mortgage Backed Securities
Commercial Paper
Corporate Bonds
Private Placements
Repurchase Agreements
International Bonds
Bond Mutual Funds
Domestic Equities
International Equities
Other Mutual Funds
Real Estate
Commingled Funds
Guaranteed Investment Contracts
Investment Types and Fair Value
(Amounts in Thousands)
Governmental
Activities
Business-Type
Activities
$
16,323
596,023
424,533
8,946
787,788
27,385
630,988
269
80,298
160
2,076
640,744
198,114
135,349
15,214
23,751
-
3,587,961
$
$
-
5,889
6,441
679
1,016
-
264
-
-
-
6,440
1,721
148
1,067
214
-
-
23,879
$
Fiduciary Funds
(including Fiduciary
Component Units)
$
321
1,593,360
794,161
11,770
681,137
890,971
2,580,935
2,447,525
3,669
2,190
515,897
11,731,031
3,766,307
496,219
2,820,141
7,567
-
28,343,201
$
Reconciliation to the Government-wide Statement of Net Assets and Statement of Fiduciary Net Assets
Investments Per Investment Note
Certificates of Deposit †
Other Cash Equivalents †
Repurchase Agreements ††
Investments Classified as Restricted Assets
Foundations and pooled investments §
Investments per Statements
$
3,587,961
17,821
(291,160)
(80,298)
5
-
$
3,234,329
$
23,879
86,443
82,577
-
-
-
$
192,899
$
28,343,201
2,526
11,163
(3,669)
-
-
$
28,353,221
† Investment types not required to be presented in the investment credit note.
†† Short-term repurchase agreements are included as cash equivalents; however these investments are subject to
investment risk disclosures.
§ University foundations follow the investment reporting requirements of the FASB and are not subject to GASB
disclosure requirements. For this reason some of the investment information is not available. Also, investments
of affiliated entities are included in an investment pool. The investment information that is available is being disclosed.
75
Discretely Presented
Component Units
$
$
17,343
523,050
614,355
3,915
709,254
241,823
339,573
42,475
94,913
99,482
973,151
429,178
6,443
1,345,385
404,488
209,049
34,656
6,088,533
$
6,088,533
37,938
(381,880)
(85,867)
-
(55,146)
$
5,603,578
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
C. Investment Risks
1. Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Nationally recognized
statistical rating organizations provide ratings of debt securities quality based on a variety of factors, such as the financial
condition of the issuers, which provide investors with some idea of the issuer’s ability to meet its obligations. The ratings of the
State’s investments as of September 30, 2010 are presented below.
Ratings of Fixed Maturities (Amounts in Thousands)
Moody's
Aaa
Standard
& Poor's
Aa1
Aa2
Aa3
Aa
A1
A2
A3
A
P1
P2
Baa1
Baa2
Baa3
Baa
Ba1
Ba2
Ba3
B1
B2
B3
Caa1
Caa2
AAA
AA+
AA
AA-
A+
A
A-
BBB+
BBB
BBB-
BB+
BB
BB-
B+
B
B-
CCC+
CCC
Caa3
Ca
C
U S Govt Guaranteed Securities
Withdrawn Rating
Not Rated †
Governmental
Activities
$
695,008
31,320
20,776
444
44,982
2,895
26,403
7,645
-
63,945
7,778
81,920
22,323
53,415
3,415
-
6,834
21,995
57,803
6,809
98,070
8,469
47,960
29,584
-
15,231
752
9,027
2,980
8,868
25
5,345
17
2,663
638
2,469
132
1,817
297
5,121
4,240
9,523
6,079
74
552,465
-
607,909
2,575,465
$
Business-
Type
Activities
$
10,340
402
27
-
34
-
124
-
-
72
-
5,093
-
40
-
-
-
-
36
-
58
-
9
-
16
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,365
-
1,113
20,729
$
RSA
Fiduciary
Component Units
934,426
$
-
44,459
-
158,493
-
28,142
-
-
244,867
-
318,265
-
241,290
-
8,475
222,224
580,415
427,247
34,103
267,402
-
126,145
-
-
81,679
-
55,734
-
63,435
-
29,853
-
419
-
-
-
-
-
993
-
-
-
-
1,110,079
-
2,285,374
7,263,519
$
Other
Fiduciary
Funds
$
552,788
1,435
29,057
-
51,269
-
13,177
-
627
86,673
65
95,194
-
72,759
106
4,086
98,981
310,016
107,192
5,462
75,636
-
39,533
-
-
28,470
-
6,522
-
16,682
45
10,178
-
929
-
2,132
13
1,345
-
6,438
350
2,017
493
247
411,261
137
227,102
2,258,417
$
Component
Units
$
1,780,124
64,580
11,995
-
2,149
150,617
730
-
20,302
36,526
-
3,791
117,638
3,288
-
27
60,730
153,993
4,937
-
3,604
59,795
2,415
-
26
664
-
383
11,901
659
-
299
-
-
665
246
-
-
-
-
-
-
-
247
443,097
221
826,043
3,761,692
$
† Consists primarily of private placements and bond mutual funds that are not rated.
76
The investment policy for the State Treasurer was mentioned earlier. The investments allowed are U.S. government or agency
securities, repurchase agreements backed by U.S government or U.S. government agency securities, or mutual funds investing in
U.S government or U.S. government agency securities. The U.S. government and U.S. government agency securities are rated Aaa
or AAA. Bond mutual funds may or may not be rated.
As mentioned earlier the investments of the Alabama Trust Fund are limited to those authorized for the Retirement Systems of
Alabama. Domestic fixed-maturity investments may consist of rated or non-rated securities. International fixed-maturity
investments may consist of securities with a rating of at least A by one of the principal rating agencies at the time of purchase or
acquisition, except that up to 2% of the fair value of each System’s total portfolio may be invested in obligations of sovereign
countries with a rating of BBB or BAA at the time of purchase. The Systems may hedge against the possible adverse effects of
currency fluctuations on each System’s portfolio of international fixed income obligations when it is considered appropriate.
Short-term investments may consist of commercial paper rated at least A-2 and/or P-2, repurchase agreements, short-term U.S.
securities, and other money market investments.
2. Interest Rate Risk
Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair value of those
investments. The Treasurer’s Office policy states that the maximum effective maturity of any purchase will be five years. Market
accepted average life at time of purchase shall be used in lieu of final maturity for the purpose of maturity acceptability of
mortgage-backed securities. Average effective duration should be plus or minus 30% of the index duration. The portfolio is
benchmarked against the Barclays Capital 1 - 3 Year Government Index.
The fair value of fixed-maturity investments fluctuate in response to changes in market interest rates. Increases in prevailing
interest rates generally translate into decreases in fair value of those instruments. The fair value of interest sensitive instruments
may also be affected by the creditworthiness of the issuer, prepayment options, relative values of alternative investments, and other
general market conditions. Certain fixed maturity investments have call provisions that could result in shorter maturity periods.
However, the Retirement System of Alabama’s intent is to hold all fixed maturity investments until maturity, and as such, the
System’s fixed maturity investments are classified in the table as if they will be held to maturity.
The investment policy of the Alabama Trust Fund states that the portfolio’s average duration is not to exceed 1.5 times that of the
benchmark index.
As of September 30, 2010 the State had the following investments and maturities:
Governmental Activities
(Amounts in Thousands)
Investment Type
U S Treasury Strips
Other U S Government Guaranteed Securities
U S Agency Securities
State and Local Government Securities
Mortgage Backed Securities
Commercial Paper
Corporate Bonds
Private Placements
Repurchase Agreements
International Bonds
Bond Mutual Funds
Less
Than 1
$
-
34,993
30,784
-
7,977
27,385
37,619
-
80,298
-
1,444
Maturity in Years at Fair Value
1-5
$
15,242
405,713
180,148
512
61,899
-
219,612
-
-
-
632
6-10
$
1,081
84,432
100,213
676
75,670
-
247,191
269
-
160
-
More
Than 10
$
-
70,885
113,388
7,758
642,242
-
126,566
-
-
-
-
Total
Fair Value
$
16,323
596,023
424,533
8,946
787,788
27,385
630,988
269
80,298
160
2,076
Total
$
220,500
$
883,758
$
509,692
$
960,839
$
2,574,789
77
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
Business-Type Activities
(Amounts in Thousands)
Investment Type
U S Government Guaranteed Securities
U S Agency Securities
State and Local Government Securities
Mortgage Backed Securities
Corporate Bonds
Bond Mutual Funds
Less
Than 1
$
1,952
1,555
392
115
7
6,112
Maturity in Years at Fair Value
1-5
3,027
2,283
287
785
105
196
6-10
$
33
2,468
-
30
126
90
More
Than 10
$
877
135
-
86
26
42
Total
Fair Value
5,889
$
6,441
679
1,016
264
6,440
Total
$
10,133
$
6,683
$
2,747
$
1,166
$
20,729
Retirement Systems of Alabama (Fiduciary Component Units)
(Amounts in Thousands)
Investment Type
U S Government Guaranteed Securities
U S Agency Securities
Mortgage Backed Securities
Commercial Paper
Corporate Bonds
Private Placements
Bond Mutual Funds
Less
Than 1
$
564
53,112
198
580,415
141,600
137,870
222,224
Maturity in Years at Fair Value
1-5
$
539,868
218,627
4,618
-
646,104
234,455
-
6-10
$
440,290
231,235
23,071
-
836,390
145,356
-
More
Than 10
$
56,235
71,303
438,740
-
360,746
1,880,498
-
Total
Fair Value
$
1,036,957
574,277
466,627
580,415
1,984,840
2,398,179
222,224
Total
$
1,135,983
$
1,643,672
$
1,676,342
$
2,807,522
$
7,263,519
78
Other Fiduciary Funds
(Amounts in Thousands)
Investment Type
U S Treasury Strips
U S Government Guaranteed Securities
U S Agency Securities
State and Local Government Securities
Mortgage Backed Securities
Commercial Paper
Corporate Bonds
Private Placements
Repurchase Agreements
International Bonds
Bond Mutual Funds
Less
Than 1
$
243
13,986
31,240
1,400
820
310,556
35,424
2,421
3,669
-
103,591
Maturity in Years at Fair Value
1-5
$
78
296,824
72,174
1,935
10,451
-
216,292
17,856
-
1,942
28,213
6-10
$
-
217,649
92,633
2,225
14,233
-
252,048
10,078
-
30
161,869
More
Than 10
$
-
27,944
23,837
3,032
192,184
-
92,331
18,991
-
218
-
Total
Fair Value
$
321
556,403
219,884
8,592
217,688
310,556
596,095
49,346
3,669
2,190
293,673
Total
$
503,350
$
645,765
$
750,765
$
358,537
$
2,258,417
Discretely Presented Component Units (excluding University of Alabama)
(Amounts in Thousands)
Investment Type
U S Treasury Strips
Other U S Government Guaranteed Securities
U S Agency Securities
State and Local Government Securities
Mortgage Backed Securities
Commercial Paper
Corporate Bonds
Private Placements
Repurchase Agreements
Guaranteed Investment Contracts
Bond Mutual Funds
Less
Than 1
$
8,866
87,544
98,270
-
2,728
214,723
4,155
303
86,455
34,656
155,583
Maturity in Years at Fair Value
1-5
$
2,041
92,614
281,922
1,044
10,011
-
13,589
-
-
-
23,712
6-10
$
6,436
94,990
167,871
-
28,693
-
9,228
990
8,458
-
20,979
More
Than 10
$
-
1,987
66,292
777
612,175
-
3,117
-
-
-
276,896
Total
Fair Value
$
17,343
277,135
614,355
1,821
653,607
214,723
30,089
1,293
94,913
34,656
477,170
Total
$
693,283
$
424,933
$
337,645
$
961,244
$
2,417,105
79
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
The University of Alabama discloses the interest rate risk for the System Pool using the effective duration method. The prices of
fixed income securities with a longer time to maturity, measured by effective duration, tend to be more sensitive to changes in
interest rates and, therefore, more volatile than those with shorter durations. Effective duration is the approximate change in price
of a security resulting from a 100 basis point (1 percentage point) change in the level of interest rates. It is not a measure of time.
The University does not have a specific policy relative to interest rate risk.
University of Alabama System Pool
(Amounts in Thousands)
Fair Value
Effective
Duration
$
33,787
911
1,526
31,889
125,899
3.4
2.3
2.2
6.4
5.8
19,534
566
1,901
21,568
132,011
3.3
2.2
1.6
6.0
5.2
$
192,237
19,764
30,979
265,878
108,160
986,610
3.0
2.9
1.6
2.0
2.4
Investment Type
Endowment Fund:
U S Government Guaranteed Securities
Mortgage Backed Securities
Collateralized Mortgage Obligations
Corporate Bonds
Commingled Bond Funds
Prime Fund:
U S Government Guaranteed Securities
Mortgage Backed Securities
Collateralized Mortgage Obligations
Corporate Bonds
Commingled Bond Funds
Intermediate Fund:
U S Government Guaranteed Securities
Mortgage Backed Securities
Collateralized Mortgage Obligations
Corporate Bonds
Bond Mutual Funds
Total
3. Foreign Currency Risk
Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an investment. The
investment policy of the Alabama Trust Fund states that the exposure to emerging market securities shall be limited to 20% of the
market value of the international portfolio. Not more than 5% of the total stock portfolio may be invested in the common stock of
any one corporation at the time of purchase and no more than 7% in any one corporation at market. Not more than 5% of the
outstanding shares of any one company may be held by the portfolio.
In order for an international security to be eligible for purchase by the Retirement Systems of Alabama (RSA), the issuing
company must be incorporated in a country whose debt securities are eligible for purchase as discussed earlier, and the fair value
of the aggregate outstanding equity of the issuing company must be at least $100 million.
80
The State’s exposure to foreign currency risk at September 30, 2010 was as follows:
Deposits and Investments Exposed to Foreign Currency Risk
(Amounts in Thousands)
Australian Dollar
Bermudian Dollar
Brazilian Real
British Pound Sterling
Canadian Dollar
Cayman Dollar
Chinese Yuan
Danish Krone
Emerging Markets
Euro
Hong Kong Dollar
Hungarian Forint
Indonesian Rupiah
Israeli New Shekel
Japanese Yen
Mexican Peso
Neth Antilles Guilder
New Turkish Lira
New Zealand Dollar
Norwegian Krone
Russian Rouble
Singapore Dollar
South African Rand
South Korean Won
Swedish Krona
Swiss Franc
Taiwan New Dollar
Thai Baht
Currency Index Funds
Totals
Cash
$
39
-
-
150
16
-
-
10
-
83
9
9
-
148
12
-
-
8
-
16
-
19
149
-
32
191
-
4
-
895
$
Governmental-Type
Activities
International
Equities
$
6,322
2,457
3,702
52,287
8,161
564
4,991
5,484
155
55,955
7,427
-
199
594
31,614
940
18
1,260
129
570
-
1,849
1,026
2,101
3,873
6,430
6
-
-
198,114
$
International
Bond
$
-
-
-
160
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
160
$
Business-
Type
Activities
International
Equities
$
-
-
-
21
-
-
-
-
-
-
-
-
-
9
18
-
-
-
-
-
-
-
-
-
-
-
-
-
100
148
$
RSA
(Fiduciary
Component
Units)
International
Equities
$
281,159
-
-
679,082
-
-
-
32,879
294,098
1,055,062
92,408
-
-
24,396
709,672
-
-
-
2,449
28,535
-
53,985
-
-
106,248
263,227
-
-
-
3,623,200
$
Other Fiduciary
Funds
International
Equities
$
10,118
-
-
26,936
2,058
-
629
1,744
-
39,580
2,863
-
-
1,120
26,722
-
-
-
75
1,727
-
2,256
-
-
4,516
10,606
-
-
12,157
143,107
$
International
Bonds
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,190
-
-
-
-
-
-
-
-
2,190
$
4. Custodial Credit Risk
For an investment, custodial credit risk is the risk that an entity will not be able to recover the value of its investments or collateral
securities that are in the possession of an outside party if the counterparty fails.
State Treasurer – The State Treasurer’s policy with respect to repurchase agreements requires that the underlying securities be held
in the counterparty’s safekeeping department, in the name of the State.
Alabama Trust Fund (ATF) – The ATF’s custodian, Bank of New York Mellon (BNYM), administers a portion of the program for
the ATF. The ATF’s custodial credit risk policy authorizes BNYM to hold securities in registered form in the name of its
nominee. The policy requires BNYM to establish and maintain one or more securities accounts (book entry system) in which
BNYM will hold the securities. These accounts are in the name of the ATF.
81
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
Retirement Systems of Alabama (RSA) – The RSA’s custodial credit risk policy requires the custodial agent to hold or direct its
agents or subcustodians to hold, for the account of the RSA all securities and other non-cash property other than securities in the
Federal Reserve book-entry system, in a clearing agency which acts as a securities depository, or in another book-entry system.
The RSA’s safekeeping agent holds all investments of the RSA in the RSA’s name with the exception of securities purchased with
securities lending collateral.
Investments Exposed to Custodial Credit Risk
(Amounts in Thousands)
Governmental-
Type
Activities
Fiduciary
Funds Other
Than RSA
Discretely
Presented
Component Units
U S Treasury Strips
Other U S Government Guaranteed Securities
U S Agency Securities
State and Local Government Securities
Mortgage Backed Securities
Corporate Bonds
Bond Mutual Funds
Repurchase Agreements
Other Mutual Funds
$
-
1,153
50,212
-
6,862
1,773
-
80,298
-
140,298
$
$
321
25,486
480
8,390
6,120
-
-
3,669
-
44,466
$
$
-
203
-
-
-
1,835
25,461
85,867
1,768
115,134
$
5. Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributable to the magnitude of a government’s investments with a single issuer.
The investment policy of the Alabama Trust Fund states that the investment portfolio shall be diversified by both asset class and
within asset classes, by economic sector and industry. For equity investments, the aggregate investment in equity securities of any
one issuing corporation shall not exceed 1% of the outstanding capital of such corporation. For fixed income investments, the
portfolio is to be diversified so that no more than 15% is invested in one industry, and no more than 5% of the total fixed income
portfolio may be invested in securities of any one corporation. As of September 30, 2010, there were no investments that exceeded
the 5% of the total fixed income portfolio limit in any one corporation.
The investment policies of the Retirement Systems of Alabama limit the aggregate amount that can be invested in each class of
investments. Domestic fixed income, international fixed income, domestic equity, international equity, alternative investments,
and short-term investments are limited to 50%, 10%, 65%, 25%, 10%, and 20%, respectively, of each System’s aggregate
portfolio. Also, each System may not purchase or hold more than 5% of any class of the outstanding stock of a foreign company.
The range for real estate may not exceed 15% of the book value of each System’s portfolio. As of September 30, 2010, the
Teachers’ Retirement System (TRS) and Employees’ Retirement System (ERS) owned debt and equity securities of Raycom
Media Corporation which represented approximately 6.15% and 6.86%, respectively, of the TRS and the ERS investments and
Goldman Sachs which represented approximately 6.63% of the TRS investments and 6.06% of the ERS investments.
D. Securities Lending
The Teachers’ Retirement System (TRS), the Employees’ Retirement System (ERS), and the Judicial Retirement Fund (JRF) are
authorized by the Boards of Control to participate in a securities lending program. The Alabama Trust Fund (ATF) investment
managers are authorized by the Board of Trustees to engage in securities lending under guidelines established by the ATF
Investment Committee. The Retirement Systems of Alabama’s (RSA) custodian, State Street Bank and Trust Company (State
Street), administers the program for the TRS, ERS, JRF, a portion of the program for the ATF, and some other funds of the State.
Certain securities are loaned to borrowers approved by the RSA. Approved borrowers of securities provide acceptable collateral in
the form of cash (U.S. and foreign currency), any other assets permissible under Rule 15c3-3 under the Exchange Act of 1934,
U.S. and non U.S. equities and such other collateral as the parties may agree to in writing from time to time. All security loans are
open loans and can be terminated on demand by the TRS, ERS, JRF, or borrower. The initial collateral received shall have
(depending on the nature of the loaned securities and the collateral received), a value of 102% or 105% of the fair value of the
82
loaned securities, or such other value, but not less than 102% of the fair value of the loaned securities, as may be applicable in the
jurisdiction in which such loaned securities are customarily traded. Pursuant to the terms of the applicable securities loan
agreement, State Street shall, in accordance with State Street’s reasonable and customary practices, mark loaned securities and
collateral to their fair value each business day based upon the fair value of the collateral and the loaned securities at the close of the
business employing the most recently available pricing information and shall receive and deliver collateral in order to maintain the
value of the collateral at no less than 100% of the fair value of the loaned securities. The lender cannot pledge or sell collateral
securities received unless the borrower defaults.
Cash collateral for TRS, ERS, and JRF is invested in the State Street Quality D Short-term Investments Fund (QDF). As of
September 30, 2010, the average term of the loans secured by QDF was 8, 8, and 9 days, respectively for the TRS, ERS, and JRF.
Cash collateral investments in the QDF are matured as needed to fulfill loan obligations. There is no direct matching of the
maturities of the loans with the investments made with cash collateral. The following describes the QDF’s guidelines. The QDF’s
average effective duration is restricted to 90 days or less. The maximum option-adjusted duration of any variable rate security
investment of the QDF shall be 2.5 years or less. All fixed rate instruments must have an option-adjusted duration not to exceed
18 months. At the time of purchase, all securities with maturities of 13 months or less must qualify as first tier securities and all
securities with maturities in excess of 13 months will be rated A or better by at least two nationally recognized statistical rating
organizations (NRSROs), or, if not rated, be of comparable quality. The QDF may invest in other State Street managed investment
vehicles provided they conform to QDF guidelines.
Cash collateral administered by State Street for ATF is invested in the State Street Global Securities Lending Trust (SSGSLT). As
of September 30, 2010, the average term of the loans secured by SSGSLT was 10 days. Cash collateral investments in the
SSGSLT are matured as needed to fulfill loan obligations. There is no direct matching of the maturities of the loans with the
investments made with cash collateral. The following describes the SSGSLT’s investment policy guidelines. The investment
manager shall maintain the dollar-weighted average maturity of SSGSLT in a manner that the investment manager believes is
appropriate to the objective of maintaining a stable net asset value per share; provided that (i) in no event shall any security be
acquired with a remaining maturity of greater than 397 calendar days and (ii) the dollar-weighted average maturity of SSGSLT
shall in no event exceed 90 days. SSGSLT will endeavor to maintain sufficient liquidity to support collateral return obligations
under securities loan transactions.
The Bank of New York Mellon (BNYM) administers a portion of the securities lending program for the ATF. Certain securities
from ATF are loaned to borrowers approved by the ATF Board of Trustees. Approved borrowers of securities provide acceptable
cash collateral in the form of Federal funds or New York Clearing House funds as applicable for a particular loan. All security
loans are open loans and can be terminated on demand by the ATF, BNYM, or the borrower. The initial collateral received shall
have (i) in the case of loaned securities denominated in United States Dollars, cash collateral in the amount of 102% of the fair
value of the loaned securities or (ii) in the case of loaned securities which are not denominated in United States Dollars, cash
collateral in the amount of 105% of the fair value of the loaned securities. Pursuant to the terms of the applicable securities loan
agreement, BNYM shall, in accordance with BNYM’s reasonable and customary practices, mark loaned securities to their fair
value each business day based upon the fair value of the loaned securities as of the close of the preceding business day, employing
the most recently available pricing information, and receive and deliver collateral in order to maintain the value of cash collateral
at no less than the collateral requirement. The ATF cannot pledge or sell collateral securities received unless the borrower
defaults. As of September 30, 2010, the average term of the loans was 52 days. Cash collateral investments are matured as needed
to fulfill loan obligations. All approved investments shall be for the account and risk of ATF. To the extent any loss arising out of
approved investments results in a deficiency in the amount of collateral available for return to a borrower, ATF agrees to pay
BNYM on demand cash in an amount equal to such deficiency.
83
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
The following describes the manner in which BNYM is authorized to invest and reinvest cash collateral for the ATF.
Securities issued or fully guaranteed by the United States Government and any agency, instrumentality, or establishment
of the United States Government (“Government Securities”).
High-grade commercial paper, notes, bonds, and other debt obligations including promissory notes, funding agreements,
and guaranteed investment contracts whether or not registered under the Securities Act of 1933, as amended. Such
obligations may have fixed, floating, or variable rate interest payment provisions.
Asset-backed securities which carry the highest credit rating by Standard and Poor’s or Moody’s.
Certificates of deposit, time deposits and other bank obligations of U.S. banks, their branches and subsidiaries.
Repurchase and reverse repurchase agreements collateralized by approved investments.
Securities, units, shares and other participations in money market funds, unregistered short-term investment funds, pools
or trusts.
Government securities have no maturity limit. Fixed rate instruments shall have a maturity of no greater than 13 months.
Floating rate instruments rated “A” or “AA” shall have maturities no greater than three years with resets no less frequent
than three months. Floating rate instruments rated “AAA” shall have maturities no greater than five years with resets no
less frequent than three months.
The Prepaid Affordable College Tuition Program’s (PACT) investment policy approved by the Board of Trustees permits the
PACT Program to enter into securities lending transactions defined as loans of securities to broker-dealers and other entities for
collateral with a simultaneous agreement to return the collateral for the same securities in the future. There are no restrictions on
the amount of loans that can be made for the PACT Program. The PACT Program’s custodian, BNYM, administers the program
and acts as an agent for the PACT Program. Certain securities of the ATF and the PACT Program are loaned to borrowers
approved by the ATF Board of Trustees and the PACT Program. Approved borrowers of securities provide acceptable cash
collateral in the form of federal funds or New York Clearing House funds as applicable for a particular loan. The BNYM has
provided loss indemnification to the PACT Program in the event that the borrower does not return the market value of the
securities loaned. The PACT program exited this program in June 2010.
84
Securities Lending - Investments Lent and Collateral Received
(Fair Value in Thousands)
Type of Investment Lent
For Cash Collateral
Domestic Fixed Maturities
Domestic Equity
International Equity
Total Lent for Cash Collateral
For Non-cash Collateral
Domestic Fixed Maturities
Domestic Equity
International Equity
Total Lent for Non-Cash Collateral
Governmental-
Type Activities
Business-
Type Activities
RSA
Fiduciary
Component Units
Other
Fiduciary
Funds
Discretely
Presented
Component Units
$
207,137
44,686
4,872
256,695
1,204
-
-
1,204
$
$
1,296,080
1,265,709
199,331
2,761,120
$
287,239
74,609
8,749
370,597
23,327
-
-
23,327
$
120,564
8,965
-
129,529
$
951
-
-
951
$
$
590,055
231,007
423,902
1,244,964
$
172,465
12,068
15,506
200,039
17,813
-
-
17,813
$
Total Securities Lent
$
386,224
$
2,155
$
4,006,084
$
570,636
$
41,140
Type of Collateral Received
Cash Collateral
Cash Collateral - Invested in
State Street Quality D Fund
State Street Global Securities Lending Trust
BNYM Investments
Total Cash Collateral
Non-Cash Collateral
For Lent Domestic Fixed Maturities
Securities Collateral - US Dollars
For Lent Domestic Equity Securities
Securities Collateral - US Dollars
For Lent International Equity Securities
Securities Collateral
US Dollar
Total Non-Cash Collateral
-
178,679
85,086
263,765
$
-
1,228
-
1,228
$
2,827,602
-
-
2,827,602
$
258,573
120,253
-
378,826
$
-
23,795
-
23,795
$
123,276
972
607,930
177,084
21,265
-
-
240,006
12,496
-
$
9,413
132,689
-
972
$
$
449,101
1,297,037
$
16,368
205,948
-
21,265
$
Total Collateral Received
$
396,454
$
2,200
$
4,124,639
$
584,774
$
45,060
E. Mortgage-Backed Securities
The State of Alabama invests in mortgage-backed securities to improve yield and adjust the duration of the State’s fixed income
portfolio. Embedded prepayment options cause these investments to be highly sensitive to changes in interest rates. Prepayments
of the underlying assets reduce the total interest payments to be received. Generally, when interest rates fall, obligors tend to
prepay the mortgages thus eliminating the stream of interest payments that would have been received under the original
amortization schedule. The resulting reduction in cash flow diminishes the fair value of the mortgage-backed securities.
The Alabama Trust Fund (ATF) invests in TBA (to be announced) purchase commitments, pursuant to which it agrees to purchase
mortgage-backed securities. The TBA market developed in response to the demands of market participants for more liquidity in
trading mortgage-backed securities. The TBA market is essentially a forward or delayed delivery market. The lender, or other
market participant, will enter into a forward contract to sell mortgage-backed securities in the TBA market, promising to deliver
mortgage-backed securities on the settlement date sometime in the future. At September 30, 2010, the ATF had investments in
TBA mortgage-backed securities in the amounts of $58,530,000. Included in investment purchases payable on the Statement of
85
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
Net Assets is a liability related to the cost of acquiring these securities. Generally, these securities are closed with a gain or loss
prior to settlement. However, the ATF would be obligated for those amounts should the securities be delivered.
F. Capital Assets
Historical costs for infrastructure assets are included in this report. The State elected to include the historical costs of all
infrastructure assets, not just assets capitalized since 1980, as required by GASB Statement No. 34. The State capitalizes
infrastructure when all costs for a project are incurred and all project documentation is completed and filed with the appropriate
entities. Due to the documentation requirements, there can be substantial time lags between the date a project is put into service
and the date the project is capitalized. A significant portion of Infrastructure Construction in Progress consists of projects that
have been put into service and maintenance costs could have been incurred but the project documentation is not complete. As of
September 30, 2010, the capital assets for the Primary Government and the Component Units are presented in the following tables:
GOVERNMENTAL-TYPE ACTIVITIES
(Amounts in Thousands)
Capital assets not being depreciated:
Land
Historical Exhibits
Construction in progress
Construction in progress - Infrastructure
Infrastructure
Total capital assets not being depreciated
Capital assets being depreciated:
Buildings
Equipment
Software and Other Intangible Assets
Total capital assets being depreciated
Less accumulated depreciation:
Buildings
Equipment
Software and Other Intangible Assets
Total accumulated depreciation
Total capital assets
being depreciated, net
Governmental-type activities
capital assets, net
Beginning
Balance
as Restated
$
242,590
2,658
122,347
4,916,622
12,354,313
17,638,530
1,257,465
605,332
2,658
1,865,455
550,105
353,708
1,881
905,694
Increases
Decreases
$
39,256
-
83,007
313,915
186,589
622,767
11,604
61,389
5,815
78,808
29,885
50,315
1,133
81,333
$
135
-
60,316
186,589
-
247,040
1,753
38,862
1,127
41,742
1,092
26,989
1,127
29,208
Ending
Balance
$
281,711
2,658
145,038
5,043,948
12,540,902
18,014,257
1,267,316
627,859
7,346
1,902,521
578,898
377,034
1,887
957,819
959,761
(2,525)
12,534
944,702
$
18,598,291
$
620,242
$
259,574
$
18,958,959
Depreciation Expense for the current year is charged as follows:
Economic Development and Regulation
Social Services
Education and Cultural Resources
Natural Resources and Recreation
Health
General Government
Protection of Persons & Property
Transportation
Total Depreciation Expense
$
2,647
5,708
3,294
7,066
8,501
8,467
21,849
23,801
81,333
86
BUSINESS-TYPE ACTIVITIES:
(Amounts in Thousands)
Beginning
Balance
as Restated
Increases
Decreases
Ending
Balance
$
82,621
2,350
224,977
10
309,958
2,665
$
-
39,482
-
42,147
2,596
$
-
150,202
-
152,798
$
82,690
2,350
114,257
10
199,307
1,397,718
485,879
3,248
1,886,845
161,643
48,947
-
210,590
4,618
1,380
-
5,998
1,554,743
533,446
3,248
2,091,437
470,710
253,699
2,383
726,792
42,167
22,693
81
64,941
3,831
1,174
-
5,005
509,046
275,218
2,464
786,728
Capital assets not being depreciated:
Land
Historical Exhibits
Construction in progress
Inexhaustible Intangible Assets
Total capital assets not being depreciated
Capital assets being depreciated:
Buildings
Equipment
Software and Other Intangible Assets
Total capital assets being depreciated
Less accumulated depreciation
Buildings
Equipment
Software and Other Intangible Assets
Total accumulated depreciation
Total capital assets being depreciated, net
1,160,053
145,649
993
1,304,709
Business-type activities capital assets, net
$
1,470,011
$
187,796
$
153,791
$
1,504,016
Depreciation Expense for the current year is charged as follows:
State Port Authority
Alabama College System
Alcoholic Beverage Control Board
Other Nonmajor Enterprise Funds
Total Depreciation Expense
$
27,441
33,950
3,287
263
64,941
87
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
COMPONENT UNITS
(Amounts in Thousands)
Capital assets not being depreciated:
Land
Historical Exhibits
Construction in progress
Total capital assets not being depreciated
Capital assets being depreciated:
Buildings
Equipment
Software and Other Intangibles
Total capital assets being depreciated
Less accumulated depreciation
Buildings
Equipment
Software and Other Intangible Assets
Total accumulated depreciation
Beginning
Balance
as Restated
Increases
Decreases
Ending
Balance
$
198,345
92,844
516,094
807,283
$
9,994
10,842
444,971
465,807
$
1,609
104
512,617
514,330
$
206,730
103,582
448,448
758,760
5,943,900
1,853,441
21,986
7,819,327
596,139
115,905
1,306
713,350
73,601
43,479
-
117,080
6,466,438
1,925,867
23,292
8,415,597
2,183,209
1,310,385
6,363
3,499,957
166,124
130,557
2,330
299,011
45,215
34,853
-
80,068
2,304,118
1,406,089
8,693
3,718,900
Total capital assets being depreciated, net
4,319,370
414,339
37,012
4,696,697
Component Units capital assets, net
$
5,126,653
$
880,146
$
551,342
$
5,455,457
Depreciation Expense for the current year is charged as follows:
Alabama Public School and College Authority
Mental Health
Water Pollution Control Authority
University of Alabama
Auburn University
University of South Alabama
State Employee Insurance Board
Other Nonmajor Component Units
Total Depreciation Expense
$
369
1,374
21
178,889
49,472
29,329
181
39,376
299,011
88
G. Derivatives
Alabama State Port Authority - In December 2002, the Alabama State Port Authority entered into a swaption contract with an
investment company in order to monetize potential debt service savings on the Authority’s callable 1996 Series bond. The
swaption gave the counterparty the option to enter into a variable-to-fixed interest rate swap at a specified future date. The
counterparty exercised its option on July 18, 2006 and the interest rate swap commenced on October 1, 2006, with the Authority
paying a fixed interest rate (5.38%) and the Authority receiving a variable interest rate (67% of the one-month LIBOR). The
Authority may be exposed to various risks such as credit risk and interest rate risk through the interest rate swap. As the interest
rate swap is a liability at September 30, 2010 and 2009, the impact of credit risk is minimized. The swap agreement is based on an
original notional amount of $60,125,000, valued at $59,950,000 at September 30, 2010, and expires on October 1, 2021. Upon
exercising of the option by the counterparty, the Authority issued variable-rate refunding bonds in an amount sufficient to refund
the fixed rate Series 1996 revenue bonds. As of September 30, 2010, the interest rate swap had a negative fair value of
approximately $16,069,000 and is recorded in the accompanying financial statements in accordance with GASB Statement No. 53
as an investment derivative instrument. The interest rate swap value is calculated using an industry accepted option pricing model
that uses market interest rates and volatility assumptions on the valuation date. The interest rate and volatility data is used to
calculate the present value of the potential future cash flows of the swap.
University of South Alabama - In January 2008, the University of South Alabama entered into a synthetic advance refunding of the
outstanding Series 2004 and 2006 bonds with a counterparty. This transaction was effected through the sale of two swaptions by
the University to the counterparty. The transactions resulted in an up-front payment to the University totaling $9,328,000, which
was recorded as a liability, in exchange for selling the counterparty the option to enter into an interest rate swap with respect to the
Series 2004 and 2006 bonds in 2014 and 2016, respectively. The objective of this transaction is to realize debt service savings
currently from future debt refunding and create an economic benefit to the University. If the counterparty exercises its options in
2016 and 2016, the University would, at the counterparty’s option, be forced into an underlying swap. If the option is exercised,
the University would begin to make payments on the notional amount, currently $41,125,000 and $100,000,000 for the 2004 bonds
and 2006 bonds, respectively, of the underlying swap contract. Simultaneously, the University would call outstanding 2004 and
2006 bonds and issue variable rate demand notes (VRDNs) in their place. Under the swap contract, the University would pay a
fixed rate of 4.9753% on the 2004 bonds and 5.0% on the 2006 bonds to the counterparty and would receive payments based on
68% of the one-month LIBOR index. Alternatively, although it is not anticipated that this option would be to the University’s
advantage, the University could, at its option, cash settle the swap and retain its right to refund the 2004 and 2006 bonds. If the
interest rate environment is such that the counterparty chooses to not exercise its option, the swaptions would be canceled and the
University would have no further obligation under this agreement. A swaption is considered a hybrid instrument and as such the
payment by the counterparty to the University must be bifurcated into two components, a borrowing component and an embedded
derivative component, and each component treated separately. The embedded derivative value of the swaptions represents the fair
value resulting from the fact that the fixed rate stated in the swaptions is greater that the at-the-market rate. The initial value of the
borrowing is the difference between the upfront payment and the fair value of the embedded derivative and represents the time
value to the counterparty for holding the option, or the probability weighted, discounted values of a range of future possible
outcomes. The values of the derivative and borrowings at the date of execution of this transaction are embedded derivatives
$918,000 for 2004 bonds and $3,343,000 for 2006 bonds and borrowings of $1,070,000 for 2004 bonds and $3,997,000 for 2006
bonds. The values of the borrowings are included in long-tem debt on the University’s 2010 and 2009 statements of net assets.
Interest is being accreted on, and added to, the borrowing through the expiration date of the option. The fair values of the
embedded investment derivatives are reported as noncurrent liabilities. The change in the fair market values of the derivatives is
reported as a component of investment income in the statements of revenues, expenses and changes in net assets. At September
30, 2010, the fair values of the derivatives are approximately $(13,327,000) and are included in other long-term liabilities in the
accompanying statements of net assets. For the year ended September 30, 2010, the changes in the fair value of the derivatives
were $(3,344,000).
Fair Value. At September 30, 2010, the embedded derivatives had fair values of $(13,327,000). The fair values of the embedded
derivatives were estimated using the zero-coupon method. This method calculates the future net settlement payments required by
the instruments, assuming that the current forward rates implied by the yield curve correctly anticipate future spot interest rates.
These payments are then discounted using the spot rates implied by the current yield curve for hypothetical zero-coupon bonds due
on the date of each future net settlement.
Interest Rate Risk. Interest rate risk, as a result of rising short-term interest rates causing higher interest rate payments, is
effectively hedged by the University’s fixed rate bonds. If the counterparty exercises its options, the underlying swaps are
expected to effectively hedge the potentially higher payments on VRDNs as well. The University is also subject to interest rate
risk, as a result of changes in long term interest rates, which may cause the value of fixed rate bonds or interest rate derivatives to
89
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
change. If long term interest rates fall subsequent to the execution of this transaction, the value of the swaptions will change, with
negative consequences for the University.
Market Access Risk. This transaction assumes that VRDNs will be issued as a replacement of the 2004 and 2006 bonds. If the
University is unable to issue variable rate bonds after the counterparty exercises its right under the swaptions, the University would
still be required to begin making periodic payments on the swaps, even thought there are no related bonds. Alternatively, the
University could choose to liquidate the swaps, which may create a substantial cash outlay.
Basis Risk. If the counterparty exercises its option, there is a risk that the floating payments received under the swaps will not
fully offset the variable rate payments due on the assumed VRDNs.
Credit Risk. Although the underlying swap exposes the University to credit risk should the swap be executed, the swaption itself
does not expose the University to credit risk. If the option is exercised on one or both issues, the University would begin to make
payments on the appropriate notional amount of the underlying swap contract. In that situation, if the fair value of the swap is
positive, the University would be exposed to credit risk on the swap in the amount of its fair value. As of September 30, 2009, the
swap counterparty was rated Aa2 by Moody’s Investors Services and AA by Standard and Poors Rating Services.
Termination Risk. The University may be required to terminate the swaptions or swaps under certain circumstances, such as credit
downgrades or other events specified in the contracts. In the event that a position needs to be terminated, the University may owe
a substantial amount of money to terminate the contracts. At September 30, 2010, no events of termination have occurred.
Alabama Public School and College Authority (Authority) - The Authority and JPMorgan Chase Bank (JPMorgan) entered into a
Master Agreement dated March 13, 2002 (the "Swap Option Agreement"), with respect to the Authority's Series 1998 Bonds,
Series 1999-A Bonds, Series 1999-C Bonds, and Series 1999-D Bonds (collectively, the "Swap Bonds"). The Swap Option
Agreement was subsequently amended on January 16, 2003. Under the terms of the Swap Option Agreement, the Authority
received certain lump sum payments in the amount of $12,587,000 from JPMorgan in return for an option to enter into fixed payer
interest rate swaps with respect to each of the Swap Bonds in the notional amounts of $283,715,000 with respect to the Series 1998
Bonds, $18,675,000 with respect to the Series 1999-A Bonds, $254,125,000 with respect to the Series 1999-C Bonds and
$153,700,000 with respect to the Series 1999-D Bonds. Such option is exercisable by JPMorgan upon 150 days prior written notice
on November 1 in the years 2008 through 2011 for the Series 1998 Bonds, September 1 in the years 2009 and 2010 for the Series
1999-A Bonds, July 1 in the years 2009 through 2011 for the Series 1999-C Bonds, and on August 1 in the years 2009 through
2011 for the Series 1999-D Bonds. JPMorgan notified the Authority of its intention to exercise its option with respect to the Series
1998 Bonds, effective November 1, 2008, the effect of which under the Swap Option Agreement would have been to require the
Authority to issue variable rate bonds for the purpose of refunding the Series 1998 Bonds. The Swap Option Agreement is
currently in litigation and no payments have been made and accepted. (See Litigation Note) By letter dated May 14, 2009,
JPMorgan notified the Authority that it was seeking $122,008,804 in termination payments allegedly due under the Swap Option
Agreement. As of September 30, 2010, the Swap Option Agreement had a value of approximately $(32,412,152). The valuations
were calculated mathematical approximations of market values derived from proprietary models as of September 30, 2010. The
valuations were calculated on a mid-market basis and do not include bid/offer spread that would be reflected in an actual price
quotation. The fair value is reported in other noncurrent liabilities on the Statement of Net Assets. The change in the fair market
values of the derivative of $43,147,714 gain is reported on the Statement of Activities as investment earnings.
The Retirement Systems of Alabama (RSA) - The RSA enters into call and put options. The RSA uses these derivative
instruments to make an investment, control risk with certain investment positions, or as a yield enhancement strategy. During the
fiscal year, these investments were used exclusively within the RSA’s domestic and international equity portfolios and are
presented in the financial statements in their respective equity classifications. These derivative instruments are either listed options
or executed in the over-the-counter (OTC) market using only credit worthy counterparties. The fair value of the investment
derivatives are based on market prices. Investment risks related to investment derivatives have been considered and included in
the respective investment risks notes above in Note 3.C..
90
The following table presents the investment derivative instruments outstanding as of September 30, 2010 (in thousands), as
reported in the Statement of Plan Net Assets and Statement of Changes in Plan Net Assets:
Investment Derivative Instruments
TRS
Domestic Options Written
International Options Written
Total Options Written
ERS
Domestic Options Written
International Options Written
Total Options Written
JRF
International Options Written
Total Options Written
Changes in Fair Value
Classification
Amount
Fair Value
Classification
Amount
Notional
Investment Income
Investment Income
$
$
160
207
367
Domestic Equity
International Equity
Totals
$
$
(50)
(228)
(278)
$
$
9,228
85,157
94,385
Investment Income
Investment Income
$
$
86
99
185
Domestic Equity
International Equity
Totals
$
$
(27)
(109)
(136)
$
$
4,973
40,672
45,645
Investment Income
3
3
$
International Equity
Totals
$
(3)
(3)
$
1,271
1,271
Alabama Trust Fund (ATF) - Derivatives can be used by the ATF’s investment managers to manage cash positions, gain broad
stock or bond market exposure and to manage risks with certain investment positions. ATF Investment Policy allows derivative
instruments to be used provided that the collateral is held in highly liquid securities and that they do not create the effect of
leverage in the portfolio.
GASB Statement No. 53 requires that the fair value of the financial arrangements called “derivatives” or “derivative instruments”
be reported in the financial statements of state and local governments. The statement further requires that derivatives be
categorized as either an investment derivative or a hedge derivative. All of the ATF’s derivative exposures as of September 30,
2010, are categorized as investment derivatives and therefore the hedge accounting provisions of GASB Statement No. 53 are not
applicable.
All derivative instruments are presented in the financial statements and are reported at fair value. ATF’s custodian Bank of New
York Mellon (BNYM) uses market prices when available. BNYM used two vendors to value derivatives when market values are
not available. The two vendors used by BNYM are Markit, and SuperDerivatives. Both vendors consider their valuation process
to be proprietary and not available for disclosure. Investment risks related to investment derivatives have been considered and
included in the respective investment risks notes above in Note 3.C..
91
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
The following table presents the derivatives instruments outstanding as of September 30, 2010 for ATF:
Investment Derivative Instruments
Changes in Fair Value
Fair Value as of September 30, 2010
Classification
Amount
Amount
Notional
Credit Default Swaps
Interest Rate Swaps
Total Swaps
Investment Income
Investment Income
$
$
2,025
(2,190,524)
(2,188,499)
$
$
55,105
(2,186,906)
(2,131,801)
$
$
(6,714,991)
(23,507,000)
(30,221,991)
Futures
Total Futures
Investment Income
$
78,335
78,335
$
56,427
56,427
$
3,921,562
3,921,562
Forwards
Total Forwards
Investment Income
$
(611,748)
(611,748)
$
(611,748)
(611,748)
$
(20,848,039)
(20,848,039)
92
GASB Statement No. 53 requires the disclosure of the maximum amount of loss due to credit risk, based on the fair value of the
instrument at the end of the fiscal year. The maximum amount of loss associated with all derivatives held by the ATF is
$987,533.32. GASB Statement No. 53 also requires additional interest rate risk disclosures for investment derivatives that are
highly sensitive to interest rate fluctuations. Presented below are all applicable derivative instruments.
Type
Fair Value
Notional Amount
Maturity Date
Reference Rate
Interest Rate Swap
$
(214,936)
$
(3,140,000)
9/16/2019
Interest Rate Swap
(227,942)
(3,330,000)
9/17/2019
Interest Rate Swap
(211,514)
(3,090,000)
9/18/2019
Interest Rate Swap
(229,584)
(2,400,000)
3/17/2020
Interest Rate Swap
(256,831)
(2,142,000)
2/15/2025
Interest Rate Swap
(99,646)
(830,000)
2/15/2025
Interest Rate Swap
(101,021)
(810,000)
2/15/2025
Interest Rate Swap
(248,843)
(2,030,000)
2/15/2025
Interest Rate Swap
(132,678)
(1,060,000)
2/15/2025
Interest Rate Swap
(334,973)
(2,790,000)
11/15/2027
Interest Rate Swap
(128,938)
(1,885,000)
7/26/2040
Totals
$
(2,186,906)
$
(23,507,000)
Pay 3.25%
Receive US 3 Month rate
Pay 3.25%
Receive US 3 Month rate
Pay 3.25%
Receive US 3 Month rate
Pay 3.6%
Receive LIBOR 3 Month rate
Zero Coupon
US 3 Month rate
Zero Coupon
LIBOR 3 Month rate
Zero Coupon
LIBOR 3 Month rate
Zero Coupon
LIBOR 3 Month rate
Zero Coupon
LIBOR 3 Month rate
Zero Coupon
LIBOR 3 Month rate
Pay 3.69%
Receive LIBOR 3 Month rate
93
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
NOTE 4 - LIABILITIES
A. Commitments
1. Construction Projects
a. Primary Government
At September 30, 2010, the Department of Transportation had construction and maintenance contracts of $2,997,478,000. The
amount already performed was $2,645,030,000, leaving an outstanding balance of $352,448,000. The funding sources for this
amount are 83 percent Federal funds and 17 percent state and local funds.
The Public Health Care Authority had total contracts for construction and repair of county health department buildings of
$1,805,000 at September 30, 2010.
The State Port Authority has contracts for several projects with estimated costs to complete of approximately $52 million.
b. Component Units
The University of Alabama at Birmingham had construction and renovation commitments remaining at September 30, 2010 of
approximately $68,621,000, which is expected to be financed from private gifts, grants, bond proceeds, and University of Alabama
at Birmingham reserves.
Auburn University had construction and renovation contracts for various facilities that are estimated to cost approximately
$703,000,000. At September 30, 2010, the estimated remaining cost to complete the projects was approximately $317,000,000
payable from University funds and bond proceeds.
The University of Alabama at Tuscaloosa had construction and renovation contract commitments for several facilities at
September 30, 2010. The estimated remaining costs to complete the facilities was approximately $68,400,000 million which is
expected to be financed from private gifts, grants, bond proceeds and University funds.
At September 30, 2010, Jacksonville State University had commitments on construction projects of $1,549,000.
2. Operating Leases
The State and its component units have entered into various lease agreements for real property. These leases do not represent
material commitments by the State, therefore disclosure of minimum future lease payments is not provided.
3. Economic Development
The State and its component units have made a variety of economic development grant commitments to the private sector to
finance the cost of industries locating and expanding in the State, as well as the training costs of employees.
a. Primary Government
The State has committed to economic development grants totaling $308,343,000 as of September 30, 2010. It is expected that in
fiscal year 2011, $23,752,000 of commitments will be paid from appropriations, $17,291,000 from prior year carry forward
dollars, and $126,917,000 will be paid from existing general obligation bond proceeds. The remaining $140,383,000 is expected
to be paid in fiscal year 2012 or later from appropriations.
b. Component Units
The Alabama Incentives Finance Authority, a component unit, has committed to economic development grants of $110,000 for
fiscal year 2011 and $17,028,000 from fiscal year 2012 and beyond. The Alabama Public School and College Authority, a
component unit, has committed $4,125,000 from fiscal year 2011. The Twenty-first Century Authority, a component unit, has
committed to economic development grants of $3,046,000 for fiscal year 2011.
c. State Entity
The State as a whole has an additional $161,060,000 in economic development grant commitments to meet for which the funding
source has not yet been decided, therefore they are not included above as either primary government or component unit. All of
these grant commitments will be paid in 2012 or beyond.
94
4. Other Commitments
The Alabama Housing Finance Authority, a component unit, has designated $69,640,000 of its unrestricted net assets for fiscal
year September 30, 2010 for funding of future single-family mortgage revenue bond programs, to support its single-family
mortgage loan origination and warehousing operations, and to cover its operating expense budget for the following fiscal year.
B. Claims and Judgments
A judgment was entered against the State in favor of Alabama State University and Alabama A&M University. The State paid
each University the final payment of $1,000,000 this year, so the total amount outstanding is $0. The Education Trust Fund was
used to liquidate this debt.
A settlement agreement was made between the State and BellSouth Telecommunications, Inc. regarding Alabama’s
unconstitutional foreign franchise tax. The State must pay BellSouth $4,767,000 for the next year in the form of actual payments
and tax credits. The amount outstanding is $4,767,000. The General Fund is being used to liquidate this debt.
C. Conduit Debt
Troy University, a component unit, issued Special Limited Obligation Revenue Bonds Series 1997 to provide athletic facility
improvements for Sartain Hall and Memorial Stadium. The total amount of outstanding conduit debt as of September 30, 2010 is
$4,110,000. The bonds are limited obligations of the City of Troy and are payable entirely from the amounts received under the
indenture. The bonds do not constitute a debt or pledge of faith and credit of the University or the State of Alabama, and it is not
reflected in the accompanying financial statements.
Revenue bonds were issued by Alabama Housing Financing Authority, a component unit, which constituted conduit debt
outstanding at year-end totaling $201,060,000 to provide multifamily housing for the citizens of Alabama. The Authority does not
actively monitor the operating performance or financial condition of the multifamily properties financed by the bonds. Multifamily
mortgage loans are collateralized by varying methods, including first-liens on multifamily residential rental properties located
within the State of Alabama, letters of credit, surety bonds and guarantees provided by third parties. These bonds do not constitute
a debt or pledge of the faith and credit of the Authority or the State of Alabama, and accordingly, have not been reported in the
accompanying financial statements.
D. Long-term Debt
1. Debt Limitations and Methods of Bond Issuance
Under Section 213 of the Constitution of Alabama of 1901, as modified by Amendment 26, the State is constitutionally prohibited
from incurring debt except to repel invasion or suppress insurrection. Therefore, the only method under which general obligation
debt can be incurred is by amendment to the Constitution. Although conventions proposed by the legislature and approved by the
electorate may be called for the purpose of amending the Constitution, historically all amendments have been adopted by a
procedure which requires them to be proposed by a three-fifths majority of each house of the legislature and thereafter ratified by a
majority of the electorate.
The Supreme Court of Alabama has ruled that the debt prohibition does not apply to debts incurred by separate public corporations
functioning as state instrumentalities. The State has followed the practice of financing certain capital improvements by issuing
debt through such public corporations. The legislature (through enabling legislation) and the Governor (by executive order) have
created public corporations and authorities of the State for the purpose of financing projects and programs such as public
highways, public educational facilities, judicial buildings, student loans, affordable housing, economic development grants, and
other projects. In most instances, state officials such as the Governor, Lieutenant Governor, Attorney General, State Treasurer,
and the Director of Finance serve as board members of these corporations. The revenue bonds issued by these corporations are
limited obligations of the corporation, not general obligations of the State, and the full faith and credit of the State is not pledged
for their repayment. Certain revenues, usually earmarked taxes or revenues generated from the project financed, are pledged for
the payment of the debt. Depending on the GASB criteria discussed in Note 1, some of these corporations are reported by
blending them with the primary government and some are reported discretely. The State also enters into lease purchase
agreements which are reported in accordance with generally accepted accounting principles as capital lease debt or notes payable.
95
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
The State and its component units issue serial and term bonds and capital appreciation bonds. Capital appreciation bonds are sold
at a deep discount and do not pay any interest until the bonds mature. Based on the original offering price, the bonds increase in
value as semi-annual interest is earned and is compounded from the original issuance date to the date of maturity. The issuance of
this type bond postpones the cash flow until the bonds mature or are called. The increase in the value of the bonds is referred to as
accretion.
2. General Obligation Bonds – Governmental Activities
The State has general obligation bond issues outstanding for the purpose of financing major capital projects for: state waterways,
State Port Authority’s facilities, prisons, roads, bridges, mental hospitals, Mobile harbor, state parks, youth services facilities, state
buildings, the State Coliseum, conservation and preservation projects, educational television, forensic sciences laboratories,
agricultural development, diagnostic and research laboratories, and historical projects. General obligation bonds also finance grant
programs for public school and college buildings, as well as economic development grants to industry and local government. The
full faith and credit of the State is pledged for the payment of the bonds. The following schedule shows the general obligation
annual debt service requirements and is followed by a detailed table describing each individual general obligation bond issue
outstanding:
GENERAL OBLIGATION BONDS
Debt Service Requirements to Maturity
Principal
Interest
Maturity
2011
2012
2013
2014
2015
2016-2020
2021-2025
2026-2030
2031-2035
Total
Unamort Prem
Unamort Loss
Total
$
$
59,551,088
64,834,609
73,187,122
72,646,514
72,272,001
357,969,360
253,580,269
91,978,575
16,117,000
1,062,136,538
$
$
34,161,088
32,689,609
31,397,122
29,571,514
27,567,001
105,079,360
47,930,269
11,358,575
1,132,000
320,886,538
$
$
25,390,000
32,145,000
41,790,000
43,075,000
44,705,000
252,890,000
205,650,000
80,620,000
14,985,000
741,250,000
34,643,057
(6,562,781)
769,330,276
96
GENERAL OBLIGATION BONDS PAYABLE
Date
Issued
Interest
Rates
Bonds Payable
Sept. 30, 2010
Final
Maturity
Date
General Obligation Issue
Series 2001
Series D - Public Historical Sites & Improvement Corp.
Series E - Capital Improvement Bonds
Series 2002
Series A - Economic Development
Series 2005
Series A - Universities and Economic Development
Series 2006 - Economic Develop. & Industry Recruitment
Series 2007 - Economic Develop. & Industry Recruitment
Series 2010
Series A - Refunding Bonds
Series B - Refunding Bonds
Series C - Refunding Bonds
Series D - Economic Development
Sub-total General Obligation Bonds
‡ Plus: Unamortized Premiums
†† Less: Unamortized Loss
Total General Obligation Bonds
06/01/01
11/01/01
09/30/21
09/01/21
4.0% to 5.0%
4.0% to 5.0%
4,025,000
64,840,000
09/01/02
09/01/22
3.0% to 5.0%
37,880,000
02/01/05
02/01/06
08/01/07
03/23/10
03/23/10
05/11/10
05/11/10
08/01/25
02/01/26
08/01/27
06/01/21
06/01/21
06/01/21
06/01/32
3.0% to 5.0%
3.5% to 5.0%
3.5% to 5.0%
3.0% to 5.0%
3.0% to 4.0%
3.3% to 5.0%
3.0% to 5.0%
84,675,000
54,370,000
273,430,000
37,765,000
12,180,000
62,085,000
110,000,000
741,250,000
34,643,057
(6,562,781)
769,330,276
$
‡ Unamortized premiums were $546,141 for Series 2001-E, $618,004 for Series 2002-A, $3,931,230 for Series 2005-A,
$868,352 for Series 2006, $7,932,795 for Series 2007-A, $3,771,805 for Series 2010-A, $648,915 for S eries 2010-B,
$6,41 9,620 for Series 2010-C and $9,906,195 for Series 201 0-D.
†† Unamortized accounting losses were $1,004,488 for Series 2010-A, $294,463 for Series 2010-B, and $5,263,832 for Series 2010-C.
Series 2010-C.
3. Revenue Bonds
a. Primary Government – Governmental Activities
The Alabama Corrections Institution Finance Authority issues bonds for the purposes of acquiring land and constructing
correctional institutions. The bonds are payable from revenues derived from payments under a lease agreement between the
Authority and the Department of Corrections.
The Montgomery Downtown Redevelopment Authority issued bonds to fund the construction of the Gordon Persons Building.
Debt service is payable solely from the revenues and receipts paid pursuant to leases, proceeds of insurance in the event of damage
or destruction of the building, amounts received in the event of condemnation of the building, amounts payable by MBIA under
the Insurance Policy, amounts on deposit in the Reserve Fund held by the Trustee, earnings, if any on funds held by the Trustee,
and funds received by the Trustee in the event of any foreclosure sale of the building.
The Alabama Building Renovation Finance Authority issues bonds to provide funding for the renovation, reconstruction,
operation, and maintenance of public office buildings in the state capitol complex. The Authority also receives income from the
rental of the office buildings to state agencies. The bonds issued by the Authority are payable from the rents received by the
authority under lease agreements.
The Alabama Judicial Building Authority issues bonds for the purpose of funding the acquisition, construction, and capital
improvements of judicial facilities. The bonds are payable from revenues and receipts paid by the Judicial System pursuant to the
lease, and earnings, if any, on funds held by the State Treasurer.
The Alabama Public Health Care Authority issues bonds for the purpose of funding the acquisition, construction, and equipping
of buildings located in each county for the use of the Department of Public Health. Transfers received from the Department of
97
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
Public Health, along with income from investing idle funds, and a Municipal Bond Insurance Policy are used for the payment of
principal and interest on the bonds.
The Alabama Federal Aid Highway Finance Authority issues bonds for the purpose of funding the costs of constructing any
roads, streets, parks, right of ways, bridges, railroad crossings, drainage structures, signs, guard rails, structures, interstates,
surfaces, resurfaces, shoulders, road sides, or any other work which is eligible for federal aid financing assistance under Title 23,
Chapter 1, of the United States Code and applicable regulations. The bonds are issued in anticipation of the receipt by the State of
the federal share of the costs.
PRIMARY GOVERNMENT
Governmental Activities
Revenue Bonds
Alabama Corrections Institution Finance Authority
2003-A Refunding Bonds
2003-B Term Bonds
Montgomery Downtown Redevelopment Authority
Date
Issued
Final
Maturity
Date
Interest
Rates
Bonds
Payable
Sept. 30, 2010
01/01/03
01/01/03
10/01/13
04/01/15
3.00% to 4.00%
5.00% to 5.00%
$
5,470,000
4,000,000
Series 2002
08/08/02
10/01/13
2.30% to
5.00%
16,715,000
Alabama Building Renovation Finance Authority
Series 2006
Series 2010
Alabama Judicial Building Authority
Series 2007 Bonds
Alabama Public Health Care Authority
Series 2005
Alabama Federal Aid Highway Finance Authority
08/01/06
07/21/10
09/01/31
09/01/24
4.00% to 5.00%
2.50% to 4.00%
28,380,000
26,990,000
10/01/07
11/01/18
3.50% to 5.00%
27,405,000
09/28/05
09/01/35
4.00% to
4.50%
52,410,000
04/01/02
Series 2002-A
Sub-total Revenue Bonds Payable
‡ Less: Unamortized Discounts
§ Plus: Unamortized Premiums
†† Less: Unamortized Loss
Net Primary Government
Revenue Bonds Payable, Governmental Activities
09/01/17
3.25% to
5.25%
110,360,000
271,730,000
(421,592)
5,943,968
(2,969,214)
$
274,283,162
‡ Unamortized Discount $421,592 for Public Health Care Authority.
§ Unamortized premium is $1,416,436 for Federal Aid Highway Finance Authority, $946,527 for Montgomery Downtown
Redevelopment Authority, $199,347 for Alabama Corrections Institution Finance Authority, $2,473,810 for Building
Renovation Finance Authority and $907,848 for Judicial Building Authority.
†† Unamortized accounting losses were $1,213,388 for the Alabama Building Renovation Finance Authority, $557,977 for
Montgomery Downtown Redevelopment Authority, $75,312 for Alabama Corrections Institution Finance Authority
$792,837 for Public Health Care Authority, and $329,700 for Judicial Building Authority.
b. Primary Government – Business-Type Activities
The Alabama State Port Authority issued bonds for the construction and maintenance of a wharf, warehouse, open storage area,
and other port facilities at Mobile Bay. The bonds are secured by the gross revenues of the Authority derived from charges made
by the Authority for all services provided. At September 30, 2010, the outstanding principal balance of the 2008-A bonds was
$60,815,000. The Series 2008-A bonds will bear interest at a rate of 100 basis points plus 67% of LIBOR (London Interbank
Offered Rate). The rate at 9/30/10 was 1.17%. At September 30, 2010, the outstanding principal balance of the 2008-B bond
anticipation note was $50,000,000. The Series 2008-B bonds will bear interest at a rate of 50 basis points plus LIBOR. The rate at
9/30/10 was 2.56%. At September 30, 2010, the outstanding principal balance of the 2009-A bond anticipation note was
$29,298,000. The rate at 9/30/10 was 2.26%. The Authority issued Series 2010 Docks Facilities Revenue Bonds during
98
December 2010. The Series 2010 debt has refunded the 2008-B and 2009-A debt with long-term debt, and as such, the 2008-B
and 2009-A debt is shown as long-term as of September 30, 2010.
The Alabama College System has numerous bond issues outstanding for a variety of purposes. Most were issued for the
construction, renovation, and acquisition of buildings for various purposes, including classrooms, research facilities, dormitories,
student centers, dining facilities, and athletic facilities.
PRIMARY GOVERNMENT
Business-Type Activities
Revenue Bonds, Proprietary Funds
State Port Authority
Series 2006-A
Series 2006-B
Series 2006-D
Series 2008-A
Series 2008-B
Series 2009-A
Alabama College System
Sub-total Revenue Bonds Payable, Proprietary Funds
§ Less: Unamortized Premium
†† Less: Unamortized Loss
Date
Issued
11/01/06
11/01/06
12/07/06
04/01/08
07/09/08
11/03/09
Various
Net Primary Government Revenue Bonds Payable, Proprietary Funds
§ Unamortized premium $4,235 ,839 for Alab ama State Port Auth ority.
†† Unamortized accounting losses were $9,189,613 for Alabama State Port Authority.
Final
Maturity
Date
Interest
Rates
Bonds Payable
Sept. 30, 2010
10/01/36
10/01/36
10/01/30
10/01/21
12/10/10
12/01/10
Various
4.50% to 5.00%
4.50% to 5.00%
Variable
Variable
Variable
Variable
1.60% to 7.65%
$
$
147,610,000
59,485,000
21,600,000
60,815,000
50,000,000
29,298,000
274,255,000
643,063,000
4,235,839
(9,189,613)
638,109,226
Revenue Bonds
Debt Service Requirements to Maturity
Governmental Activities
Principal
$
Interest
$
Business-type Activities
Principal
$
Interest
$
Maturity
2011
2012
2013
2014
2015
2016-2020
2021-2025
2026-2030
2031-2035
2036-2040
Total
Unamort Prem
Unamort Loss
Unamort Disc
27,040,000
28,265,000
29,535,000
24,715,000
25,850,000
71,295,000
26,350,000
21,230,000
17,450,000
0
271,730,000
5,943,968
(2,969,214)
(421,592)
274,283,162
$
12,336,563
11,036,060
9,689,020
8,230,631
6,990,566
20,160,133
11,979,438
6,875,775
2,235,600
0
89,533,786
23,000,000
24,065,000
24,270,000
28,200,000
28,560,000
128,995,000
128,625,000
87,470,000
81,945,000
87,933,000
643,063,000
4,235,839
(9,189,613)
0
638,109,226
$
28,282,589
27,566,180
26,672,759
26,945,749
25,235,432
107,152,101
80,072,106
55,709,824
34,236,497
14,480,802
426,354,039
$
$
99
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
c. Component Units
The Alabama Incentives Finance Authority issues bonds to fund financial commitments to industries relocating to Alabama
under the terms of the State’s Industrial Incentives legislation. Revenues from the Tennessee Valley Authority to the State “in lieu
of taxes” are pledged for the payment of these bonds.
The Alabama Public School and College Authority is authorized to issue bonds to construct and improve educational buildings.
Revenue from the sales and use taxes, the leasing tax, and the utilities gross receipts and use taxes are pledged for the payment of
these bonds.
The State Industrial Development Authority issues bonds for the purpose of financing projects that promote the industrial
development of the State. Revenues from cigarette and tobacco taxes are pledged for the payment of these bonds.
The Alabama Mental Health Finance Authority issues bonds for the acquisition, construction, improvement, and equipping of
mental health facilities. Revenues from certain tobacco and liquor taxes are pledged for the payment of principal and interest on
these bonds.
The Alabama Twenty-first Century Authority issues bonds for the purpose of promoting economic development and industrial
recruitment for the State of Alabama. The bonds are special obligations of the Authority payable solely from the Trust Estate
created under the Indenture.
The Alabama Revolving Loan Fund Authority issues bonds for the purpose of making grants to the Regional Planning and
Development Commissions which are utilized by the grantees as revolving loan funds. Revenues from privilege and license tax on
providers of cellular radio telecommunication services are used to pay the debt.
The Alabama Housing Finance Authority issues bonds that are limited obligations of the Authority and are not a debt or liability
of the State. Each bond issue is secured, as described in the applicable trust indenture, by all revenues, monies, investments,
mortgage loans, and other assets in the funds and accounts of the program. Substantially all of the Authority's assets are pledged
as security for the bonds.
The Alabama Water Pollution Control Authority issues bonds to provide funds for the purpose of making loans to certain local
government units to construct sewage treatment plants and related facilities. Proceeds from loan agreements are used for payment
of debt service related to the bonds.
The Alabama Drinking Water Authority issues bonds to provide funds for the purpose of making loans to local governments for
planning, designing, acquiring, or constructing sanitary drinking water and related facilities. Proceeds from the loan agreements
are used for payment of debt service related to the bonds.
The Alabama Space Science Exhibit Finance Authority issued bonds to finance the construction of the Space Camp and related
housing facilities for the campers. The bonds are secured by a lease of the facilities to the Space Science Exhibit Commission as
well as a pledge of all revenues of the Commission. At September 30, 2010, the outstanding principal balance of the 2009-A
bonds was $4,400,000. The interest rate is variable and equal to 70% of LIBOR plus 3%, but at no time less than 4.3%. The
interest rate was 4.3% as of September 30, 2010.
The Alabama Higher Education Loan Corporation issues bonds to provide Alabama lending institutions with a secondary
market for student loans made under the Higher Education Act, as amended, which established the Federal Family Education Loan
Program. The corporation issues tax-exempt revenue bonds in order to fund its operations. The proceeds are used to purchase
student loans and fund operating costs of the corporation. The bonds are repaid from principal repayments on student loans,
interest, and special allowance payments from the U. S. Department of Education, interest income from investments, guaranteed
payments on defaulted loans, proceeds from any sale of loans and issuance of refunding bonds. The interest rate for the 2006A-1
and 2006-A2 bonds is an auction rate based on an auction period of 35 days. At September 30, 2010, the rate for the 2006-A1 was
0.106% and the rate for the 2006-A2 was 0.455%.
The boards of the various institutions of higher education have numerous bond issues outstanding for a variety of purposes.
Most were issued for the construction, renovation, and acquisition of buildings for various purposes, including classrooms,
research facilities, dormitories, student centers, dining facilities, hospitals, and athletic facilities.
100
COMPONENT UNITS
Revenue Bonds
Alabama Incentives Finance Authority
Series 2009-A
Series 2009-B
Series 2009-C
Alabama Public School and College Authority
Series 2001-A
Series 2002-A
Series 2002-B
Series 2003
Series 2005
Series 2006
Series 2007
Series 2008
Series 2009-A
Series 2009-B
Series 2009-C
Series 2009-D
Series 2010-A
Series 2010-B
Series 2010-Q
State Industrial Development Authority
Special Tax Bonds, Series 2003
Mental Health Finance Authority
Series 2005
Alabama Twenty-first Century Authority
Tobacco Settlement Revenue Bonds, Series 2000
Tobacco Settlement Revenue Bonds, Series 2001
Alabama Revolving Loan Fund Authority
Series 2000
Sub-Total Revenue Bonds, Component Units
Continued on next page
Date
Issued
Final Maturity
Date
Interest
Rates
Bonds Payable
Sept. 30, 2010
09/17/09
09/17/09
09/17/09
05/15/01
08/22/02
12/01/02
12/01/03
02/01/05
03/01/06
12/05/07
02/05/08
10/21/09
10/21/09
10/21/09
12/03/09
04/14/10
04/14/10
09/14/10
09/01/29
09/01/29
09/01/29
02/01/21
02/01/22
12/01/28
02/01/23
08/01/25
03/01/26
12/01/27
02/01/28
05/01/24
05/01/19
05/01/29
12/15/25
05/01/19
05/01/14
03/01/27
3.00% to 4.00%
1.93% to 4.97%
3.00% to 4.00%
$
23,605,000
98,945,000
17,800,000
4.50% to 5.63%
3.00% to 5.00%
4.00% to 5.00%
2.00% to 5.00%
3.00% to 4.50%
4.00% to 5.00%
2.50% to 5.00%
3.25% to 4.25%
5.00% to 5.00%
3.00% to 5.00%
3.00% to 4.00%
5.76% to 5.76%
4.00% to 5.00%
5.00% to 5.00%
5.15% to 5.15%
34,095,000
75,285,000
26,800,000
97,110,000
69,690,000
46,360,000
1,003,595,000
45,980,000
422,605,000
159,040,000
35,705,000
145,880,000
109,775,000
70,980,000
154,727,000
01/01/03
07/01/13
2.50% to 4.50%
650,000
06/01/05
06/01/15
3.00% to 5.00%
7,010,000
09/01/00
12/01/01
12/01/20
12/01/19
5.00% to 6.13%
5.25% to 5.75%
33,780,000
80,985,000
03/01/00
03/01/20
8.18% to 8.18%
$
8,330,000
2,768,732,000
101
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
COMPONENT UNITS, Continued
Revenue Bonds
Sub-Total from previous page
Alabama Housing Finance Authority
Single family Bond Programs
Alabama Water Pollution Control Authority
Refunding Bonds, Series 1997
Revolving Fund Loan Bonds, Series 2000
Revolving Fund Loan Bonds, Series 2002-A
Refunding Bonds, Series 2002-B
Revolving Fund Loan Bonds, Series 2003-A
Revolving Fund Loan Bonds, Series 2003-B
Revolving Fund Loan Bonds, Series 2003-C
Revolving Fund Loan Bonds, Series 2004-A
Revolving Fund Loan Bonds, Series 2008
Revolving Fund Loan Bonds, Series 2010-A
Revolving Fund Loan Bonds, Series 2010-B
Alabama Drinking Water Authority
Revolving Fund Loan Bonds, Series 1998-A
Revolving Fund Loan Bonds, Series 2000-A
Revolving Fund Loan Bonds, Series 2000-B
Revolving Fund Loan Bonds, Series 2000-C
Revolving Fund Loan Bonds, Series 2002-A
Revolving Fund Loan Bonds, Series 2003-A
Revolving Fund Loan Bonds, Series 2004-A
Revolving Fund Loan Bonds, Series 2005-A
Alabama Space Science Exhibit Finance Authority
Series 2005-B
Series 2009-A
Higher Education Loan Corporation
Student Loan Revenue Bonds, Series 2006-A1
Student Loan Revenue Bonds, Series 2006-A2
Sub-total Revenue Bonds Payable, Component Units
Continued on next page
Date
Issued
Final Maturity
Date
Interest
Rates
Bonds Payable
Sept. 30, 2010
$
2,768,732,000
1999-2010
2015-2039
Various
514,357,000
08/15/12
08/15/23
08/15/24
08/15/14
08/15/26
02/15/16
08/15/15
08/15/16
08/15/29
08/15/23
08/15/21
08/15/22
08/15/21
08/15/21
08/15/23
08/15/24
08/15/21
08/15/28
08/15/28
Apr 2026
09/01/29
03/01/33
11/01/41
4.50% to 5.00%
4.30% to 5.75%
3.00% to 5.10%
3.00% to 5.40%
3.00% to 5.00%
3.00% to 4.38%
2.50% to 4.25%
2.00% to 4.00%
3.00% to 4.00%
3.00% to 4.00%
2.00% to 3.00%
4.00% to 4.85%
4.10% to 6.00%
8.35% to 8.35%
4.30% to 5.50%
3.00% to 5.46%
2.00% to 4.50%
4.00% to 4.63%
4.00% to 5.25%
9,900,000
43,370,000
24,155,000
23,105,000
30,680,000
28,780,000
5,385,000
18,330,000
38,715,000
36,440,000
64,750,000
21,080,000
5,550,000
3,750,000
18,300,000
25,765,000
33,705,000
24,625,000
41,490,000
5.77% to 5.77%
4.33% to 4.33%
10,500,000
4,400,000
Variable
Variable
18,775,000
56,325,000
3,870,964,000
$
10/01/97
12/01/00
01/15/02
02/01/02
01/01/03
01/01/03
08/01/03
04/01/04
02/01/08
06/21/10
08/02/10
09/01/98
02/01/00
02/01/00
12/01/00
01/01/02
12/01/03
12/01/04
10/01/05
05/01/05
09/25/10
11/27/06
11/27/06
102
Date
Issued
Final Maturity
Date
Interest
Rates
Bonds Payable
Sept. 30, 2010
$
3,870,964,000
2036
2041
09/01/34
2033
2038
2038
2023
06/01/19
2030
2035
2038
2028
2.75% to 5.90%
2.50% to 5.75%
1.40% to 5.30%
3.00% to 5.38%
1.90% to 8.50%
1.40% to 6.00%
2.25% to 5.00%
3.00% to 3.00%
3.00% to 4.60%
1.35% to 5.40%
2.00% to 5.25%
2.75% to 6.50%
543,185,000
715,020,000
86,226,000
60,040,000
165,957,000
544,988,772
82,265,000
2,155,000
19,399,000
21,145,000
330,574,000
102,880,000
6,544,798,772
(11,787,041) †
(56,077,685) ‡
144,139,990 §
$
6,621,074,036
COMPONENT UNITS, Continued
Revenue Bonds
Sub-Total from previous page
Higher Education
2004
1993
05/01/80
1980
1965
1978
1993
University of Alabama - Tuscaloosa
University of Alabama - Birmingham
University of Alabama - Huntsville
Alabama A&M University
Alabama State University
Auburn University
Jacksonville State University
University of West Alabama
University of Montevallo
University of North Alabama
University of South Alabama
Troy University
Total Revenue Bonds Payable
Less: Unamortized Discounts
Less: Unamortized Loss
Plus: Unamortized Premium
Net Revenue Bonds Payable, Component Units
1985
1999
1999
1998
12/01/67
† Unamortized discounts were $9,649,517 for the University of Alabama - Birmingham, $55,000 for the University of South Alabama,
$101,902 for the University of Montevallo, $714,984 for the Drinking Water Authority, $275,306 for Auburn University,
$15,000 for State Industrial Development Authority, $246,091 for the University of North Alabama, and $729,241 for
Alabama State University.
‡ Unamortized accounting loss was $3,664,506 for Alabama State University, $487,983 for the Alabama Space and Science Commission,
$5,953,845 for the Water Pollution Control Authority, $32,858,923 for the Public School and College Authority, $2,146,881 for the University
of Alabama - Tuscaloosa, $5,681,638 for Auburn University, $250,482 for the Mental Health Finance Authority, $540,000 for the
University of South Alabama, $1,578,805 for Incentives Financing Authority and $2,914,623 for Alabama A & M University.
§ Unamortized premiums were $1,819,125 for the University of Alabama - Tuscaloosa, $10,838,886 for Auburn University, $1,122,484 for
the Alabama Twenty-first Century Authority, $112,303,268 for Alabama Public School and College Authority, $7,656,000 for the
University of South Alabama, $2,651,637 for the Water Pollution Control Authority, $404,022 for the Mental Health Finance Authority,
$1,076,412 for Alabama State University, $3,829,972 for Incentives Financing Authority and $2,438,184 for Alabama A & M University.
103
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
COMPONENT UNITS
Debt Service Requirements to Maturity
Maturity
2011
2012
2013
2014
2015
2016-2020
2021-2025
2026-2030
2031-2035
2036-2040
2041-2045
Total
Unamort Disc
Unamort Loss
Unamort Prem
Principal
$
$
321,783,610
343,664,833
322,952,538
325,889,349
303,070,361
1,517,696,606
1,211,911,475
1,193,797,000
595,787,000
377,286,000
30,960,000
6,544,798,772
(11,787,041)
(56,077,685)
144,139,990
6,621,074,036
†
Interest
$
$
291,954,734
282,837,215
270,788,707
256,815,879
242,628,840
1,003,994,929
667,519,361
372,062,187
193,417,942
51,079,705
1,585,903
3,634,685,402
Total
613,738,344
626,502,048
593,741,245
582,705,228
545,699,201
2,521,691,535
1,879,430,836
1,565,859,187
789,204,942
428,365,705
32,545,903
10,179,484,174
$
$
† The above table shows interest in the year it will be paid, not the year it is accrued.
4. Refunded Bonds
Advance refunding bonds are issued to retire existing bonds. A portion of the proceeds from the sale of the refunding bonds is
deposited with an escrow agent according to an escrow trust agreement. The proceeds are invested by the escrow agent in certain
U.S. Treasury obligations in such amounts with certain maturities to provide sufficient funds to pay the remaining maturing
principal and interest on the refunded bonds as they become due. The refunded bond debt is considered to be retired for financial
reporting purposes even though the debt is still legally outstanding and the issuer of the bonds has not been released from the debt
obligations. The U.S. Treasury obligations constitute a trust fund to be held by the escrow agent for the benefit of the holders of
the refunded bonds. Advance refundings and early redemptions are discussed in the remainder of this section.
In March 2010, the State of Alabama issued General Obligation Refunding Bonds Series 2010-A (bonds) in the amount of
$37,765,000. An original issue premium of $3,771,805 was received on the sale of the bonds. The bond proceeds were used to
refund, on a current basis, the General Obligation Bonds Series 2001-A bonds with an aggregate outstanding principal amount of
$40,185,000. As a result of the refunding, the State of Alabama recognized an economic gain of $4,687,849 and a reduction in the
cash flows required to service the new debt compared to the cash flows to service the old debt of $7,729,940.
In March 2010, the State of Alabama issued General Obligation Refunding Bonds Series 2010-B (bonds) in the amount of
$12,180,000. An original issue premium of $648,915 was received on the sale of the bonds. The bond proceeds were used to
refund, on a current basis, the General Obligation Series 2001-B bonds with an aggregate outstanding principal amount of
$12,425,000. As a result of the refunding, the State of Alabama recognized an economic gain of $1,372,075 and a reduction in the
cash flows required to service the new debt compared to the cash flows required to service the old debt of $2,066,893.
In May 2010, the State of Alabama issued General Obligation Refunding Bonds Series 2010-C (bonds) in the amount of
$62,085,000. An original issue premium of $6,419,621 was received on the sale of the bonds. The bond proceeds together with
$11,646,870 of remaining General Obligation 2001-C funds were used to refund, on an advance basis, the General Obligation
Bonds Series 2001-C bonds with an aggregate outstanding principal amount of $74,415,000. As a result of the refunding, the State
of Alabama recognized an economic gain of $5,568,512 and a reduction of reduction in the cash flows required to service the new
debt compared to the cash flows required to service the old debt of $12,543,646.
On October 28, 2009, the Alabama Public School and College Authority (APSCA) issued Capital Improvement Refunding Bonds
Series 2009-A in the amount of $467,325,000. An original issue premium of $34,459,604.70 was received on the sale of the
104
bonds. The Series 2009-A bond proceeds were used to refund, on a current basis, the APSCA Series 1998 bonds maturing fiscal
years 2010 through 2017 with an aggregate principal amount outstanding of $212,720,000, Series 1999-A bonds with an aggregate
principal amount outstanding of $18,360,000, and Series 1999-C bonds with an aggregate outstanding principal amount of
$250,000,000. The APSCA had an economic gain related to the refunding of $23,206,829 and a reduction in the cash flows
required to service the new debt versus the cash flows to service the old debt of $7,922,939.
On October 28, 2009, the APSCA issued Capital Improvement Pool Refunding Bonds Series 2009-B in the amount of
$174,960,000. An original issue premium of $12,193,548.45 was received on the sale of the bonds. The Series 2009-B bonds
were used to refund, on a current basis, the Series 1999-D bonds with an aggregate principal amount outstanding of $151,170,000
and to refund, on an advance basis, the Series 1999-C maturing 2014 through 2018 with an aggregate principal amount outstanding
of $27,815,000. The APSCA had an economic gain related to the refunding of $14,676,246 and a reduction in the cash flows
required to service the new debt versus the cash flows to service the old debt of $28,033,133.
On April 22, 2010, the APSCA issued Capital Improvement Bonds Series 2010-A in the amount of $109,775,000. An original
issued premium of $12,259,295 was received on the sale of the bonds. The Series 2010-A bonds were used to refund, on an
advance basis, Series 1998 bonds maturing in November 2017 and 2018 with an aggregate principal amount outstanding of
$66,190,000 and Series 2009-A Series bonds maturing in 2025 through 2029 with an aggregate principal amount outstanding of
$44,720,000. The APSCA had an economic gain related to the refunding of $7,258,276 and a reduction in the cash flows required
to service the new debt versus the cash flows to service the old debt of $34,437,176.
On April 22, 2010, the APSCA issued Capital Improvement Bonds Series 2010-B in the amount of $70,980,000. An original issue
premium of $7,926,803 was received on the sale of the bonds. The Series 2010-B bonds were used to refund, on an advance basis,
Series 2001-C bonds maturing 2010 through 2013 with an aggregate principal amount outstanding of $74,900,000. The APSCA
had an economic gain related to the refunding of $3,107,981 and a reduction in the cash flows required to service the new debt
versus the cash flows to service the old debt of $6,518,540.
On June 21, 2010, the Alabama Water Pollution Control Authority issued the 2010-A Revolving Fund Loan Refunding Bonds in
the amount of $36,440,000 with interest rates ranging from 3% to 4%. The 2010-A bonds were used to refund $42,615,000 of the
Series 1999 bonds. The refunding resulted in an accounting loss of approximately $795,521. The Authority reduced its aggregate
debt service by approximately $16.6 million and obtained an economic gain of approximately $7.4 million.
On August 2, 2010, the Water Pollution Control Authority issued the 2010-B Revolving Fund Loan Refunding Bonds in the
amount of $64,750,000 with interest rates ranging from 2% to 3%. The 2010-B bonds were used to refund $39,535,000 of the
Series 1998-A bonds and $40,410,000 of the Series 1998-B bonds. The refunding resulted in an accounting loss of approximately
$1,030,734. The Authority reduced its aggregate debt service by approximately $23 million and obtained an economic gain of
approximately $11.7 million.
On July 21, 2010, The Alabama Building Renovation Finance Authority issued the Series 2010 Revenue Refunding Bonds in the
amount of $26,990,000 with interest rates from 2.5% to 4%. The 2010 bonds were used to currently refund $27,915,000 of the
Series 1999 bonds. The refunding resulted in an accounting loss of $1,213,388. The Authority had an economic gain related to
the refunding of $5,048,164 and a reduction in the cash flows required to service the new debt versus the cash flows to service the
old debt of $5,666,403.
On December 29, 2009, Auburn University issued $79,500,000 in General Fee bonds with interest rates ranging from 2% to 5%
were issued to advance refund $79,450,000 of outstanding bonds with interest rates ranging from 4.45% to 6%. This refunding
resulted in the University recognizing a loss of $6,121,267 for the difference between the acquisition price of the new debt and the
net carrying amount of the old debt. The economic gain for the University is $4,352,046.
105
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
Defeased Bonds:
Component Units
University of Alabama in Tuscaloosa
University of Montevallo
$
Amount
23,500,000
7,820,000
Primary Government
State Port Authority
Amount
23,489,000
$
5. Arbitrage
The Tax Reform Act of 1986 requires that governmental entities issuing tax-exempt debt subsequent to August 1986, to calculate
and rebate arbitrage earnings to the federal government. The U.S. Treasury has issued regulations on calculating the rebate
amount and complying with the provisions of the Tax Reform Act of 1986. Governmental issuers must comply with the rebate
regulation in order for their bonds to maintain tax-exempt status.
The regulations require the excess of the aggregate amount earned on investments purchased with bond proceeds over the amount
that would have been earned if the proceeds were invested at a rate equal to the bond yield to be rebated to the federal government.
Income earned on excess earnings is also subject to rebate. Rebate payments, if required, are due at least once every five years
over the life of the bonds. Bond issues with arbitrage liabilities outstanding at September 30, 2010, were as follows:
Component Units
Water Pollution Control Authority
Housing Finance Authority
Amount
2,400,510
3,301,000
$
These lists are based upon incomplete data since some bond issues have not yet been included in arbitrage calculations. Any
refunded bond issue is subject to the rebate requirement until the last bond is redeemed. Bond issues that have already been
redeemed may be subject to additional payments if an arbitrage rebate or spending payment is owed and has not been paid.
106
6. Bonds Authorized But Not Issued
Bonds Authorized But Not Issued
(Amounts in Thousands)
Primary Government
General Obligation Bonds
State of Alabama
Federal Aid Highway Finance Authority
Farmers Market Authority
Highway Authority
Corrections Institution Finance Authority
Public Health Finance Authority
Public Health Care Authority
Parking Deck Authority
Gulf State Park Authority
Alabama Toll Road, Bridge and Tunnel Authority
Total Primary Government
Component Units
State Industrial Development Authority †
Mental Health Finance Authority
Alabama Public School and College
Authority-Pool Bonds
Alabama Public School and College
Authority-Capital Improvement Bonds
Alabama Revolving Loan Finance Authority
Alabama Incentives Financing Authority
Total Component Units
Authorized
Issued
Unissued
750,000
$
720,025
$
29,975
10,000
13,000
4,000
45,000
10,000
20,000
23,000
45,000
-
7,000
19,000
-
$
Based on amount received in federal funds
Unlimited
13,000
70,000
Based on Authority's construction of toll road, bridge
or tunnel projects payable from tolls and other revenues
$
-
-
$
184,975
13,000
70,000
$
746,025
931,000
$
100,000
100,000
$
38,390
84,265
$
61,610
15,735
Unlimited
241,500
24,000
300,000
765,500
-
-
175,000
297,655
241,500
24,000
125,000
467,845
Total Reporting Entity
$
1,696,500
$
1,043,680
$
652,820
† The State Industrial Development Authority is authorized to issue a total of $100,000,000 in bonds in addition
to any bonds authorized prior to 1991. No more than $40,000,000 in aggregate principal amount of such bonds
may be outstanding at any one time. At 9/30/10, $650,000 was outstanding.
7. Derivative Transactions
University of South Alabama - On February 27, 2007, the University of South Alabama Research and Technology Corporation
entered into a derivative transaction with Wachovia Bank, N.A. The derivative is a “receive variable, pay fixed” interest rate swap
entered into in connection with the promissory note that came into effect upon conversion of the construction loan into a
permanent loan on May 1, 2008. The Corporation utilizes the interest rate swap to convert its variable rate on the promissory note
to a synthetic fixed rate. The promissory note came into effect on May 1, 2008, upon conversion of the construction loan. Also,
on May 1, 2008, the interest rate swap associated with the loan became effective. The swap will terminate on My 1, 2028, when
the loan matures. The notional amount of the swap will at all times match the outstanding principal amount of the loan. Under the
swap, the Corporation pays the counterparty a fixed payment of 6.10% and receives a variable payment of the one-month LIBOR
rate plus 0.85%. The Corporation paid $864,000 and $756,000 under the interest rate swap agreement for the years ended
107
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
September 30, 2010 and 2009, respectively, which is reflected as an increase in interest expense.
Fair Value. The interest rate swap had a fair value of $(4,171,030) at September 30, 2010. The changes in fair value are reported
as a deferred outflow on the Statement of Net Assets since the interest rate swap is a hedging derivative instrument. The fair value
of the interest rate swap was estimated using the zero-coupon method. This method calculates the future net settlement payments
required by the swap, assuming that the current forward rates implied by the yield curve correctly anticipate future spot interest
rates. These payments are then discounted using the spot rates implied by the current yield curve for hypothetical zero-coupon
bonds due on the date of each future net settlement.
Interest Rate Risk. On the Corporation’s “receive-variable, pay-fixed” interest rate swap, as LIBOR decreases, the net payment on
the swap increases.
Credit Risk. As of September 30, 2010 the Corporation was not exposed to credit risk on the interest rate swap because it had a
negative fair value. However, if interest rates change and the fair value of the derivative becomes positive, the Corporation would
have a gross exposure to credit risk in the amount of the derivatives’ fair value. The counterparty was rated Aa2 by Moody’s
Investors Services and AA by Standard & Poor’s Ratings Services as of September 30, 2010.
Termination Risk. The interest rate swap contracts use the International Swaps and Derivatives Association, Inc. Master
Agreement, which includes standard default and termination events, such as failure to make payments, breach of agreement, and
bankruptcy. At September 30, 2010, no events of default or termination had occurred. If the interest rate swap is terminated,
interest rate risk associated with the variable rate debt would no longer be hedged. Also, if at the time of termination the interest
rate swap had a negative fair value, the Corporation would be liable to the counterparty for a payment equal to the interest rate
swap’s fair value. To allow the Corporation the maximum flexibility to manage the utilization of Building II and III while at the
same time providing protection for the counterparty, the Corporation granted the counterparty a $2,000,000 mortgage secured by
an interest in the ground lease with respect to the parcel of land on which Building II stands, an interest in Building II, a security
interest in Building II tenant leases and a security interest in income received from rental of Building II.
8. Notes, Mortgages, and Capital Leases
Debt Principal Requirements to Maturity
Governmental
Business-Type
Maturity
2011
2012
2013
2014
2015
2016-2020
2021-2025
2026-2030
2031-2035
2036-2040
2041-2045
Total
Interest
Net
Activities
Principal
$
$
5,534,766
4,800,031
4,694,171
5,253,463
4,831,936
26,577,533
24,881,841
26,187,185
13,017,226
1,483,352
67,698
117,329,202
(214,155)
117,115,047
Activities
Principal
$
2,764,887
3,549,073
1,210,893
776,865
323,490
2,420,817
581,744
60,333
-
-
-
1 1,688,102
-
$
1 1,688,102
Component
Units
Principal
13,124,620
$
8,367,332
6,374,297
13,089,697
16,388,808
31,474,379
35,967,195
39,668,694
33,025,002
2,605,000
-
2 00,085,024
(1,957,578)
$
1 98,127,446
108
At September 30, 2010 assets recorded under capital leases were as follows (amounts expressed in thousands):
Buildings
Equipment
Less: accumulated depreciation
Total
Governmental
Activities
$
$
87,589
1,431
(31,136)
57,884
The State leases office buildings and equipment with varying terms and options. Most buildings under capital lease have a term of
twenty-five to thirty years, but can range from twenty to forty years. Capital leases are recorded at the lower of the present value
of the future minimum lease payments or fair market value. Principal and interest capital lease payments are recorded as
expenditures of the applicable governmental function in the governmental fund. The largest capital leases in governmental
activities are for buildings in county facilities used by the Department of Public Health and the Department of Human Resources.
109
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
9. Changes in Noncurrent Liabilities
Beginning
Balance
(Amounts in Thousands)
Primary Government
Governmental Activities:
Bonds Payable:
General Obligation Bonds
Revenue Bonds
Capital Leases/Notes/Mortgages
Claims & Judgments
Compensated Absences
Other Long-Term Liabilities
Other Post-Employment Benefits
Total Governmental Activities
Business-type Activities:
Revenue Bonds
Capital Leases/Notes/Mortgages
Claims & Judgments
Compensated Absences
Other Long-Term Liabilities
Other Post-Employment Benefits
Total Business-Type Activities
Total Primary Government
Component Units:
Revenue Bonds
Arbitrage
Capital Leases/Notes/Mortgages
Compensated Absences
Claims & Judgments
Other Long-Term Liabilities
Other Post-Employment Benefits
Total Component Units
(As Restated)
Additions
Reductions
Ending
Balance
Due Within
One Year
$
687,336
298,712
56,927
80,956
291,608
-
272,074
1,687,613
$
619,360
14,275
5,838
26,957
17,063
12,839
696,332
2,383,945
$
$
6,254,679
17,671
205,029
141,830
128,213
200,535
27,192
6,975,149
†
††
†
‡
†
§
$
222,030
26,990
65,802
24,083
14,396
779
188,290
542,370
$
34,133
700
22,391
6,789
4,236
8,299
76,548
618,918
1,565,836
$
-
16,840
28,254
1,217,009
-
17,494
2,845,433
$
$
(140,036)
(51,419)
(5,614)
(30,457)
(17,730)
-
(92,567)
(337,823)
$
(15,384)
(3,287)
(21,769)
(7,341)
(855)
(4,079)
(52,715)
(390,538)
$
$
(1,199,441)
(11,969)
(23,742)
(38,183)
(1,211,724)
(12,889)
(8,599)
(2,506,547)
$
769,330
274,283
117,115
74,582
288,274
779
367,797
1,892,160
$
638,109
11,688
6,460
26,405
20,444
17,059
720,165
2,612,325
$
$
6,621,074
5,702
198,127
131,901
133,498
187,646
36,087
7,314,035
$
25,390
27,040
5,535
16,449
2,147
-
-
76,561
23,000
2,765
4,381
2,366
-
-
32,512
$
109,073
321,784
$
-
13,125
29,251
133,496
1,000
-
498,656
$
† Compensated Absences debt is liquidated proportionately by all funds having payroll costs.
†† Other Long-term liabilities are payable as follows: Department of Finance, $779,000.
‡ Other Long-term liabilities are payable as follows: State Port Authority, $20,266,000, and Alabama College System, $178,000.
§ Other Long-term liabilities are payable as follows: University of Alabama, $18,467,000, Auburn University, $32,993,000,
University of Alabama at Huntsville, $178,000, University of South Alabama, $87,225,000, University of North Alabama, $258,000,
University of Alabama at Birmingham, $13,527,000 and Public School and College Authority, $34,998,000.
110
NOTE 5 - INTERFUND ACTIVITY AND INTRA-ENTITY BALANCES
A. Interfund Balances
Interfund balances as of September 30, 2010 consisted of (amounts in thousands):
General
Fund
$ 0
1,568
161,566
-
Education
Trust
Fund
$ 0
-
437,391
381
Medicaid
Fund
$ 0
-
-
-
DUE FROM
Public
Welfare
Trust
Fund
$ 0
-
-
1,752
Public
Road &
Bridge
Fund
$ 22
-
-
-
Nonmajor
Govern-
mental
$ 2,134
403
527
5,625
Alcoholic
Beverage
Control
Board
$ 11,290
585
-
-
Nonmajor
Enterprise
Funds
$ 0
-
-
-
Internal
Service
Funds
$ 20
-
-
-
Fidu-
ciary
Funds
$ 0
-
-
-
Total
$ 13,466
2,556
599,484
7,758
7
-
-
-
44
198
-
-
139
-
388
-
-
7,606
-
-
600
6,204
-
-
-
14,410
3,075
5,500
23,661
1,581
2,819
19,169
329
641
976
-
57,751
-
-
-
-
-
49
-
-
-
-
49
-
-
-
-
-
47
-
-
-
-
47
1,819
71
168,106
$
772
-
444,044
$
468
-
31,735
$
1,254
18
$
2,875
2,243
7
$
6,865
17,685
33
46,470
$
188
-
18,596
$
-
-
641
$
232
-
1,367
$
15
21
$
36
24,676
150
720,735
$
DUE TO
General Fund
Education Trust
Alabama Trust
Medicaid Fund
Public Road
& Bridge Fund
Public Welfare
Trust Fund
Nonmajor
Governmental
Unemployment
Compensation
Alcoholic
Beverage
Control Board
Internal
Service Funds
Fiduciary Funds
Totals
The majority of the interfund balances due to the Nonmajor Governmental Funds from the General Fund, Medicaid, and the
Nonmajor Governmental Funds consist of routine short term borrowings of cash between funds of individual agencies.
The Education Trust Fund has the most interfund payables, $444,044,000 in total. Of that amount, $437,391,000 is due to repay
the Education Trust Fund Rainy Day Account within the Alabama Trust Fund which was used to alleviate a budget shortfall.
Pursuant to Amendment No. 803 Constitution of Alabama 1901, the Legislature must provide for the replenishment of the account
within six years after withdrawal.
The General Fund has the second most interfund payables, $168,106,000 in total. Of that amount, $161,566,000 is due to repay
the General Fund Rainy Day Account within the Alabama Trust Fund which was used to alleviate a budget shortfall. Pursuant to
Amendment No. 803 Constitution of Alabama 1901, the Legislature must provide for the replenishment of the account within ten
years after withdrawal.
Nonmajor Governmental Funds have the third most interfund payables, totaling $46,470,000. Of that amount, $5,625,000 is owed
to Medicaid, $19,169,000 is owed to other Nonmajor Governmental Funds, and $17,685,000 is owed to Internal Service Funds for
goods and services.
Medicaid owed $7,606,000 to the Public Welfare Trust Fund and $23,661,000 to Nonmajor Governmental Funds. Of the latter
amount, $12,608,000 is due to Public Health, $1,355,000 is due to Youth Services, $8,742,000 is due to Senior Services, and
$943,000 is due to Rehabilitation Services. The Alcoholic Beverage Control Board (ABC) has interfund payables totaling
$18,596,000. ABC owed $11,290,000 to the General Fund and $6,204,000 to the Public Welfare Trust Fund. ABC is required by
111
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
law to distribute profits and certain taxes collected to those two funds, local governments, and the Mental Health component unit.
The law also allows ABC to delay distribution for 120 days in order to maintain sufficient operating cash.
The Alabama Trust Fund has the largest interfund receivable, the $437,391,000 due from the Education Trust Fund and
$161,566,000 due from the General Fund as discussed previously. Nonmajor Governmental Funds rank second in receivables, at
$57,751,000. The Internal Service Funds rank third in receivables, at $24,676,000. Risk Management, an Internal Service Fund,
financed several buildings and building renovations for various Nonmajor Governmental Funds in the amount of $9,286,000 for a
period of longer than one year. The remaining Internal Service Fund receivable of $15,390,000 generally represent normal billings
for services rendered or goods sold to the other funds late in the fiscal year which will be paid early in the subsequent fiscal year.
The Public Welfare Trust Fund ranks fourth in receivables, at $14,410,000. Majority of that amount is due from Medicaid and
ABC as discussed above.
B. Balances with Component Units
Balances owed by state funds to component units at September 30, 2010, consisted of (amounts in thousands):
Public
School &
College
Authority
$ 0
-
-
-
-
15,491
-
-
-
$ 15,491
PAYABLE TO
State
Mental
Health
$ 9
7
37,767
-
315
133,056
2,424
-
22
$ 173,600
Employees'
Health
Insurance
$ 183
11
-
10
66
144
2
26
306
$ 748
Nonmajor
Component
Units
$ -
1
5
-
-
865
-
-
-
$ 871
Total
$ 192
19
37,772
10
381
149,556
2,426
26
328
$ 190,710
PAYABLE BY
General Fund
Education Trust Fund
Medicaid Fund
Public Road and Bridge Fund
Public Welfare Trust Fund
Nonmajor Governmental
Alcoholic Beverage Control Board
Nonmajor Enterprise
Internal Service Funds
Totals
The largest payable of $133,056,000 is a short term payable owed by Nonmajor Governmental Funds to Mental Health for tax
revenues pledged by the primary government to support Mental Health programs. The second largest short term payable was
$37,767,000 owed by Medicaid to the Mental Health component unit, primarily for funding Medicaid eligible patients in the care
of Mental Health. In addition to the above balances with component units, the financial statements report Water Pollution Control
Authority has a long term receivable of $6,032,000 that is due from the primary government as a whole.
112
Balances owed to state funds by component units at September 30, 2010 consisted of (amounts in thousands):
PAYABLE FROM
Public
Water
Education
Pollution
Employees'
Control
Authority Health Insur
$ 0
$ 0
Mental
Health
$ 0
8,241
-
-
544
233
-
406
-
419
State
Employees'
Health
Insurance
$ 5
2
-
1
2
436
Nonmajor
Component
Units
$ 0
-
-
-
-
1,415
Total
$ 5
2
8,241
1
546
2,909
-
1,898
$ 13,602
PAYABLE TO
General Fund
Education Trust Fund
Medicaid
Public Road and Bridge Fund
Public Welfare Trust Fund
Nonmajor Governmental
Alcoholic Beverage Control Board
Internal Service Funds
Totals
317
$ 9,335
-
$ 406
1
$ 420
104
$ 550
1,476
$ 2,891
The component units of the State owe $13,602,000 to various funds of the State. The largest amount, $8,241,000, is owed by
Mental Health to Medicaid to match federal dollars. Risk Management, an Internal Service Fund, financed building renovations
for Crime Victims Compensation, a Nonmajor Component Unit in the amount of $1,312,000 for a period of longer than one year.
The remaining Internal Service Fund receivable of $586,000 is owed for routine billings of services rendered. Nonmajor
Component Units owe Nonmajor Governmental Funds $1,415,000. Of that amount, $1,158,000 is owed by the Drinking Water
Finance Authority to the Department of Environmental Management primarily for payroll costs.
C. Balances Between Component Units
Balances owed between component units at September 30, 2010 consisted of (amounts in thousands):
PAYABLE FROM
State
Employees'
Health
Insurance
$ 41
-
$ 41
University of
Alabama
$ 71,248
-
$ 71,248
Mental
Health
$ 0
3
$ 3
Nonmajor
Component
Units
$ 0
1
$ 1
Total
$ 71,289
4
$ 71,293
PAYABLE TO
Mental Health
State Employee's Health Insurance
Totals
The component units of the State had interfund payables due to other component units totaling $71,293,000. The largest amount,
$71,248,000, is owed by the University of Alabama to Mental Health for the purchase of the Bryce Hospital property. State
Employees’ Health Insurance owes Mental Health $41,000 in refunds.
113
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
D. Interfund Transfers
Transfers among the various funds of the primary government during fiscal year 2010 were as follows (amounts in thousands):
Edu-
cation
Trust
Fund
General
Fund
0
$
$
0
Ala
Trust
Fund
0
$
Medicaid
Fund
14,777
$
Public
Road &
Bridge
Fund
$
0
Public
Welfare
Trust
Fund
97,897
$
Non-
major
Govern-
mental
110,218
$
Unemploy-
ment
Compen-
sation
0
$
State
Port
Auth
$
0
Alabama
College
System
0
$
Alcoholic
Beverage
Control
Board
0
$
Internal
Service
Funds
Total
$
1,900
$
224,792
TRANSFERS IN
-
64,387
-
-
-
-
-
-
-
6,694
-
-
-
-
-
12,673
-
64,604
21,827
139,040
236,073
-
-
-
-
-
-
338,945
-
-
-
-
-
1,119
-
-
381,258
203,427
300,677
-
-
-
-
-
-
58,764
-
53
-
-
-
58,817
-
-
-
24,741
102
-
48,579
-
-
-
-
-
73,422
31,697
382
6,104
67,740
837
1,385
206,202
5,755
22,566
379
7,350
350,397
-
-
-
-
-
-
-
-
-
-
-
-
9,366
54
-
-
-
-
-
-
-
-
-
-
9,366
54
12,766
-
-
-
-
430
245
-
-
-
-
-
13,441
-
-
-
-
-
-
9,687
-
-
-
-
-
9,687
-
-
108,850
$
-
-
382
$
-
-
6,104
$
-
-
113,952
$
6
-
945
$
-
-
176,989
$
149
52
840,256
$
-
-
5,755
$
-
-
53
$
-
-
361,511
$
-
-
379
$
9
-
10,378
$
164
52
1,625,554
$
TRANSFERS
OUT
General Fund
Education
Trust Fund
Alabama Trust
Medicaid
Public Road
& Bridge Fund
Public Welfare
Trust Fund
Nonmajor
Governmental
Unemployment
Compensation
State Port Auth
Alcoholic
Beverage
Control Board
Nonmajor
Enterprise
Internal
Service Funds
Fiduciary Funds
Totals
Transfers are often made between funds as required by the legislature in the appropriation acts as well as by a variety of existing
statutes. Of the $224,792,000 transferred to other funds by the General Fund, $204,913,000 was transferred in compliance with
the appropriation acts. Of that amount, $97,897,000 was transferred to the Public Welfare Trust Fund, $61,307,000 was
transferred to various Nonmajor Governmental Funds and $36,420,000 was transferred to the Department of Public Health. The
remaining General Fund transfers were made in small amounts to comply with a variety of statutes.
Of the $381,258,000 transferred out of the Education Trust Fund, the appropriation acts as adjusted by proration required the
transfer of $369,194,000 to other funds. Of that amount, $338,945,000 was transferred to supplement the operations of the
Alabama College System. The appropriation acts also mandated that the Internal Service Funds receive $1,119,000 to fund
telephone and computer services and the Public Welfare Trust Fund received $12,673,000. The remaining Education Trust Fund
transfers were made in small amounts to comply with a variety of statutes.
The Alcoholic Beverage Control Board transferred $12,766,000 to the General Fund and $430,000 to the Public Welfare Trust
Fund, which represents those funds’ statutorily mandated share of the Board’s profits.
The Alabama Trust Fund, in compliance with amendments to the Constitution of Alabama of 1901, is required to transfer to other
funds a substantial portion of its investment earnings as well as a portion of new income from offshore oil and gas rights. In
compliance with these amendments, the General Fund received $64,387,000, and the Nonmajor Governmental Funds received
$139,040,000. Within the Nonmajor Governmental Funds, the Forever Wild Land Trust Fund received $10,140,000, the County
Government Capital Improvement Fund received $12,948,000, the Municipal Government Capital Improvement Fund received
$12,948,000, the Alabama Capital Improvement Trust Fund received $49,313,000, the County and Municipal Capital
Improvement Trust Fund received $52,720,000, and the Senior Services Trust Fund received $971,000.
114
Medicaid transferred out $64,604,000 to the Public Welfare Trust Fund, and $236,073,000 to Nonmajor Governmental Funds to
fund services provided to Medicaid recipients. The Departments of Public Health, Youth Services, Senior Services, and
Rehabilitation Services were the Nonmajor Governmental Fund recipients. The financial statements show $12,000 more transfers
in for Internal Service Funds because transfers of capital assets were made from general government capital assets to Internal
Service Funds.
NOTE 6 - RISK MANAGEMENT
The State manages risk through risk control and risk financing to minimize the adverse effects of certain types of losses. Risk
financing includes self-insurance through several different funds. The State Insurance Fund provides coverage for state buildings
and contents against fire and casualty losses. The General Liability Trust Fund insures state employees against the risk of loss
from employment-related liability claims. The State Employee Injury Compensation Trust Fund was created by the 1994
legislature to provide benefits to eligible state employees for job-incurred injury. The State Insurance Fund, the General Liability
Trust Fund, and the State Employee Injury Compensation Trust Fund are administered by the Division of Risk Management of the
Department of Finance.
There was no significant reduction in insurance coverage by the three Division of Risk Management funds from the prior year.
These funds do not have acquisition costs; therefore, no cost is amortized for the period. The funds use the accrual basis of
accounting for reporting purposes. As required by GASB Statement No. 31, “Accounting and Financial Reporting for Certain
Investments and External Investment Pools,” most investments are recorded at fair value. Liabilities are reported when it is
probable that a loss has occurred and the amount of that loss can be reasonably estimated. Liabilities include an amount for claims
that have been incurred but not reported (IBNR). Because actual claims liabilities depend on such complex factors as inflation,
changes in legal doctrines, and damage awards, the process used in computing claims liabilities does not necessarily result in an
exact amount. Claims liabilities are reevaluated periodically to take into consideration recently settled claims, the frequency of
claims, and other economic and social factors. Estimated claims liabilities are calculated by the plans’ actuary based on prior
claims data for the General Liability Trust Fund and State Employee Injury Compensation Trust Fund. For the State Insurance
Fund, estimated claims liabilities are based on management’s judgment. Non-incremental claims adjustment expenses have not
been included as part of the liability for any of the funds.
The separately issued financial report of the Division of Risk Management contains additional note disclosures and supplementary
information regarding claims development and liabilities.
115
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
A. The State Insurance Fund
The State Insurance Fund (SIF) was established in 1923 and is under the Code of Alabama 1975, Section 41-15-1 for the purpose
of insuring direct physical loss on buildings and contents in which title in whole or in part is vested in the State of Alabama or any
of its agencies or institutions or in which funds provided by the State have been used for the purchases of land, construction of
buildings, purchase or maintenance of any equipment, machinery, furniture, fixtures or supplies in such buildings and public
school buildings together with the contents of all such buildings. All covered property shall be insured for no more than its
replacement cost and shall be insured for no less than 80 percent of its actual cash value. Ten percent of actual cash value, salvage
value, is used for property that is normally uninsurable. City boards of education may insure school buildings and property either
in the State Insurance Fund or with an insurance company, whichever in the opinion of such board provides the best coverage for
such school buildings and property. The principles of private industry insurance companies are utilized to establish rates, premium
discounts, and experience credits to result in equitable premiums charged to policyholders. Excess insurance and reinsurance is
acquired to assure the solvency of the fund.
Losses are recorded as current liabilities and expenses in the year reported. IBNR recognizes losses that have occurred but have
not yet been reported. This liability and expense is determined by a professional actuary. The SIF has a $10,000,000 cumulative
loss annual deductible and a $3,500,000 specific loss deductible for all perils except named wind storms, and a $10,000,000
specific loss deductible for named wind storms. Excess insurance covers claims exceeding the deductible with a $1,000,000,000
limit. Payments received in fiscal years 2010, 2009, and 2008 for settlements in excess of deductibles totaled $2,273,9751,
$14,166,000, and $14,655,000 respectively.
The following table presents the changes in claims liabilities for the past two years:
(Amounts in Thousands)
September 30,
Reported claims payable and estimated claims incurred but not reported at beginning of year
Incurred claims and adjustment expenses:
Provision for insured events of the current year
Increase (Decrease) in provision for insured events of prior years
Total incurred claims and adjustment expenses
Payments:
Claims and adjustment expenses attributable to insured events of the current year
Claims and adjustment expenses attributable to insured events of prior years
Total payments
2010
2009
$ 12,302
$ 7,871
6,538
3,804
10,342
12,113
3,781
15,894
(6,310)
(6,242)
(12,552)
(2,980)
(8,483)
(11,463)
Reported claims payable and estimated claims incurred but not reported at end of year
A schedule of ten-year loss development information for the State Insurance Fund is in the Required Supplementary Information
section of the CAFR.
$ 10,092
$ 12,302
116
B. General Liability Trust Fund
The General Liability Trust Fund (GLTF) was established in 1984 to protect state employees from personal financial liability
resulting from lawsuits that are based on alleged negligence while acting within the line and scope of state employment. Claims
are investigated and defended through the Office of the Attorney General. Auto liability is fully reinsured and the re-insurer,
American Southern Insurance Company, handles all claims. The GLTF is managed much like a commercial insurance company,
with exposure evaluated and commensurate premiums assigned to state agencies. Investment activities are an essential part of the
General Liability Trust Fund’s ability to maintain lower-cost employee liability coverage. Funds in excess of those needed for
immediate operations are invested to maximize return and keep premiums down.
Losses are recorded as current liabilities and expenses in the year reported. IBNR recognizes losses that have occurred but have
not yet been reported. This liability and expense is determined by a professional actuary. Excess insurance was not renewed in
April 2002, so the GLTF is currently without excess coverage. Payments received in fiscal years 2009 and 2010 for settlements in
excess of deductibles for old claims (prior to April 2002) totaled $2,833,932 and $0, respectively.
The following table presents the changes in claims liabilities for the past two years:
(Amounts in Thousands)
September 30,
Reported claims payable and estimated claims incurred but not reported at beginning of year
$ 28,721
$ 27,416
2010
2009
Incurred claims and adjustment expenses:
Provision for insured events of the current year
Increase (Decrease) in provision for insured events of prior years
Total incurred claims and adjustment expenses
Payments:
Claims and adjustment expenses attributable to insured events of the current year
Claims and adjustment expenses attributable to insured events of prior years
Total payments
668
4,643
5,311
4,969
3,996
8,965
(654)
(3,651)
(4,305)
(1,376)
(6,284)
(7,660)
Reported claims payable and estimated claims incurred but not reported at end of year
$ 29,727
$ 28,721
117
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
C. State Employee Injury Compensation Trust Fund
The State Employee Injury Compensation Trust Fund (SEICTF) was created by the legislature on October 1, 1994. Its purpose is
to provide benefits to eligible state employees for job-incurred injury. Benefits under SEICTF are administered by the Department
of Finance, Division of Risk Management in accordance with the Alabama Administrative Code and include all reasonable
medical expenses arising from a job-incurred injury, lost wages (including benefits for time lost from the job), and benefits to
dependents of employees who are fatally injured on the job. Specifically excluded from coverage are employees of the State Port
Authority, educational institutions, and local boards of education. A key element in assuring effective and efficient operation of
SEICTF was the creation of a statewide medical provider network with a focus on professionals who are experts in treating
occupational injury.
Losses are recorded as current liabilities and expenses in the year reported. IBNR recognizes losses that have occurred but have
not been reported. This liability and expense is determined by a professional actuary.
The following table presents the changes in claims liabilities for the past two years:
(Amounts in Thousands)
September 30,
Reported claims payable and estimated claims incurred but not reported at beginning of year
$ 27,281
$ 25,767
2010
2009
Incurred claims and adjustment expenses:
Provision for insured events of the current year
Increase (Decrease) in provision for insured events of prior years
Total incurred claims and adjustment expenses
Payments:
Claims and adjustment expenses attributable to insured events of the current year
Claims and adjustment expenses attributable to insured events of prior years
Total payments
4,304
4,126
8,430
2,376
5,588
7,964
(1,124)
(5,327)
(6,451)
(1,132)
(5,318)
(6,450)
Reported claims payable and estimated claims incurred but not reported at end of year
$ 29,260
$ 27,281
The Department of Transportation finances its own risk for state employee injury compensation. This table includes the changes
in claims liabilities for the Department of Transportation as well as Risk Management. The claims incurred but not reported at the
beginning of the year for Transportation totaled $8,894,000, and total claims payments were $1,892,121 in 2010. The Department
of Transportation had $9,795,787 in claims liabilities at the end of the year.
118
D. State Employees' Insurance Plan
The State Employees' Insurance Plan (SEIP) was established in 1965 by Alabama Act No. 833 to provide health insurance benefits
for state employees. The SEIP is administered by the State Employees' Insurance Board (SEIB). The monthly premiums for
employee and dependent coverage are determined annually and are set at a rate necessary to provide sufficient funds to pay all
claims and reasonable expenses of administering the plans. The State pays a monthly premium for each employee and the
employee pays the established dependent premium. The SEIB establishes claims liabilities based on estimates of the ultimate cost
of claims (including future retroactive claims adjustments) that have been reported but not settled, and of estimated claims that
have been incurred but not reported. Because actual claims liabilities are affected by complex changing factors such as inflation,
medical technology, and changes in legal doctrines, the process used in computing claims liabilities does not result in an exact
amount. Actual claims costs incurred may vary from estimated claims liabilities depending on the similarities in the nature and
frequency of the claims between current and prior years. Adjustments of the estimated claims liabilities based on actual results are
charged or credited to expense in the periods in which such adjustments are determined.
The SEIB also administers a local government health insurance plan (LGHIP) in the same manner as the SEIP. The following
table represents changes in those aggregate liabilities for SEIB during the years ended September 30 (approximately 59% of claim
liabilities are related to the SEIP and the remainder to the LGHIP):
(Amounts in Thousands)
September 30,
2010
2009
$ 48,982
$ 37,102
Reported claims payable and estimated claims incurred but not reported at beginning of year
Incurred claims and adjustment expenses:
Provision for insured claims of the current year
Adjustment to estimated claims incurred but not reported at end of year
Total incurred claims and adjustment expenses
Payments:
Claims and adjustment expenses attributable to insured claims of the current year
Claims and adjustment expenses attributable to insured claims of prior years
Total payments
Reported claims payable and estimated claims incurred but not reported at end of year
At year-end, unpaid claims liabilities are computed using the gross method without discounting the accrued claims payable. The
separately issued financial report contains note disclosures and supplementary information regarding claims development.
(391,773)
(31,552)
(423,325)
$ 55,450
(372,651)
(30,020)
(402,671)
$ 48,982
405,747
8,804
414,551
429,067
726
429,793
119
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
E. Public Education Employees' Health Insurance
The Public Education Employees' Health Insurance Fund (PEEHIF) was established in 1983 by the provisions of Act 83-455 to
provide a uniform plan of health insurance for current and retired employees of public educational institutions and to provide a
method of funding the benefits related to the plan. The plan is administered by the Public Education Employees' Health Insurance
Board (PEEHIB).
The State contributes a specified amount monthly to each respective participating school system. Each participating school system
must then pay the employer rate to the PEEHIF each month. That rate was $752 per participant for 2010 and 2009. In addition to
the employer payments each month, the employee pays certain premium amounts. PEEHIB established claims liabilities based on
the actual cost of claims reported but not settled, and estimates of claims that have been incurred but not reported. Because actual
claims liabilities are affected by complex changing factors such as inflation, medical technology, and changes in legal doctrines,
the process used in computing claims liabilities does not result in an exact amount. Actual claims costs ultimately incurred may
vary from the estimated claims liabilities depending on the similarities in the nature and frequency of the claims between current
and prior years. Adjustments to claims liabilities are charged or credited to expense in the periods in which they are made. Note
that $419,000 of unpaid claims at year-end is classified as due to the primary government.
The following table presents the changes in claims liabilities during 2010 and 2009:
(Amounts in Thousands)
September 30,
2010
2009
$ 78,547
$ 69,594
Unpaid claims and claim adjustment expense at beginning of year
Incurred claims and adjustment expenses:
Provision for insured events of the current year
Increase (Decrease) in provision for insured events of prior years
Total incurred claims and adjustment expenses
Payments:
Claims and adjustment expenses attributable to insured events of the current year
Claims and adjustment expenses attributable to insured events of prior years
Total payments
Total unpaid claims and adjustment expenses at end of year
The separately issued financial report contains additional note disclosures and supplementary information regarding claims
development.
(713,231)
(75,739)
(788,970)
$ 76,793
(696,658)
(69,555)
(766,213)
$ 78,547
790,024
(2,808)
787,216
775,205
(39)
775,166
120
F. Alabama Health Insurance Plan
The Alabama Health Insurance Plan (AHIP) was established to provide health insurance coverage to eligible individuals as an
alternative to federal oversight required in the Health Insurance Portability and Accountability Act of 1996. AHIP was established
in 1997 under Regulation 115 pursuant to Act 97-713, codified as Section 27-52-1 in the Code of Alabama 1975, and is governed
by an eight member Board of Directors. The plan provides major medical benefits limited to $1,000,000 for the lifetime of a
participant. The plan provides that participants pay monthly premiums for health insurance coverage. Coverage is also available
for eligible dependents of participants. Premiums are determined annually and are set at a rate necessary to provide sufficient
funds to pay all claims and reasonable expenses of administering the plan.
Regulation No. 115 authorizes the Plan to recoup losses by assessing participating insurers based on their health insurance
premiums written in the state for any year in which the Plan incurs a deficit. Assessments in excess of actual losses are to be held
in interest and used by the board to offset future losses or to reduce future assessments. AHIP obtained funding from assessments
totaling $3,901,000 and $3,829,000 in 2010 and 2009, respectively.
AHIP established claims liabilities based on estimates of the ultimate cost of claims (including future retroactive claims
adjustments) that have been reported but not settled and of estimated claims that have been incurred but not reported. The
estimation of claims costs depends on many factors including historical loss experience. Adjustments of the estimated claims
liabilities based on actual results are charged or credited to expense in the periods in which such adjustments are determined.
The following table presents the changes in claims liabilities during the years ended September 30, 2010 and 2009:
(Amounts in Thousands)
September 30,
Reported claims payable and estimated claims incurred but not reported at beginning of year
$ 3,503
$ 3,508
2010
2009
Incurred claims and adjustment expenses:
Provision for insured events of the current year
Increase (Decrease) in provision for insured events of prior years
Total incurred claims and adjustment expenses
Payments:
Claims and adjustment expenses attributable to insured events of the current year
Claims and adjustment expenses attributable to insured events of prior years
Total payments
21,194
173
21,367
21,643
102
21,745
(19,374)
(1,796)
(21,170)
(19,912)
(1,838)
(21,750)
Reported claims payable and estimated claims incurred but not reported at end of year
$ 3,700
$ 3,503
At year-end, unpaid claims liabilities are computed using the gross method without discounting the accrued claims payable.
The separately issued financial report contains additional note disclosures and supplementary information regarding claims
development.
121
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
G. Alabama State Port Authority
The Alabama State Port Authority is partially self-insured with respect to workers’ compensation claims. Each claim for a loss in
excess of the $500,000 self-insured retention is covered without a policy limit. The liability for uninsured claims includes an
estimated amount for claims that have been incurred but have not been reported. The following represents changes in those
aggregate liabilities for the Authority during the years ended September 30, 2010 and 2009:
(Amounts in Thousands)
Reported claims payable and estimated claims incurred but not reported at beginning of year
Provision for claims
Total payments
Reported claims payable and estimated claims payable incurred but not reported at end of year
September 30,
2010
2009
$ 1,815
$ 2,334
1,283
1,024
(764)
(598)
$ 2,760
$ 2,334
The separately issued financial report contains additional note disclosures and supplementary information regarding claims
development.
NOTE 7 - RETIREMENT PLANS
A. Retirement Systems of Alabama
The Retirement Systems of Alabama (RSA) administers the following three retirement programs for the benefit of state employees
and public education employees: Teachers’ Retirement System, Employees’ Retirement System, and Judicial Retirement Fund.
1. Plan Descriptions
The Teachers' Retirement System of Alabama (TRS) is a cost-sharing multiple-employer defined benefit pension plan, established
as of September 15, 1939, under the provisions of the 1939 Alabama Acts 419. The TRS provides retirement allowances and other
specified benefits for qualified persons employed by State-supported educational institutions. The Board of Control has
responsibility for the general administration and operation of the TRS.
The Employees' Retirement System of Alabama (ERS) is an agent multiple-employer defined benefit pension plan established as
of October 1, 1945, under the provisions of the 1945 Alabama Acts 515. The ERS provides retirement allowances and other
specified benefits for state employees, state police, and on an elective basis, to all cities, counties, towns, and quasi-public
organizations. The Board of Control is responsible for the general administration and operation of the ERS.
The Judicial Retirement Fund (JRF) is a cost-sharing multiple-employer defined benefit pension plan, established under the 1973
Alabama Acts 1163. The JRF provides retirement allowances and other specified benefits for any Justice of the Supreme Court of
Alabama, Judge of the Court of Civil Appeals, Judge of the Court of Criminal Appeals, Judge of the Circuit Court, or office holder
of any newly created judicial office receiving compensation from the State Treasury. Act Number 1205 of the legislature of 1975
supplemented the provisions of Act Number 1163 and enlarged the scope and coverage of the JRF to include District and Probate
Judges. The Board of Control of the ERS administers and operates the JRF.
The TRS, ERS, and JRF provide retirement benefits as well as death and disability benefits as established by State law. Changes
to benefits, including ad hoc cost of living adjustments, must be established by statute. Benefits for TRS and ERS members vest
after 10 years of credited service. Teachers and state employees who retire after age 60 (52 for state police) with 10 years of
credited service or with 25 years of service (regardless of age) are entitled to an annual retirement benefit, payable monthly for
life. Service retirement benefits are calculated by two methods with the member receiving payment under the method which yields
the highest monthly benefit: (1) minimum guaranteed, or (2) formula. Under the formula method, members of TRS and ERS
(except state police) are allowed 2.0125 percent of their final average salary (highest 3 of the last 10 years) for each year of
122
service. State police are allowed 2.875 percent for each year of state police service in computing the formula method. Disability
retirement benefits are calculated in the same manner.
JRF benefits vest from five to eighteen years. Except for justices or judges who were either disabled, elected prior to July 30,
1979, or have at least 25 years of credited service, no justice or judge shall be eligible to receive judicial service retirement pay
prior to attaining sixty years of age. Service retirement benefits for justices and judges are dependent upon the particular office
held in the judicial branch of government. A retirement benefit is payable upon the request of any member who has: (1) 25 years
of credited service (regardless of age), (2) completed 12 years of credited service and has attained age 65, (3) completed 15 years
of credited service and whose age plus service equals or exceeds 77, (4) completed at least 18 years of credited service or three full
terms as a judge or justice and has attained age 65 (5) completed 10 years of credited service and has attained age 70, (6) been
elected prior to July 30, 1979 and has 18 years of service (regardless of age). A member eligible to retire who has not requested
his retirement benefit to commence at the end of the term in which his seventieth birthday occurs is entitled only to the refund of
his contributions (except for members with at least 25 years of credited service). The service retirement benefit for circuit,
appellate, and probate judges is 75% of the member’s salary at the time of separation from service. The service retirement benefit
for a district judge is 75% of the position’s salary immediately prior to retirement.
A pre-retirement death benefit is offered in which the account is credited with TRS and ERS employer contributions and
investment income on such funds. The pre-retirement death benefit (group term life insurance) is paid in addition to the return of
member contributions upon the death of an active TRS or ERS member who has completed at least one year of active membership
in the system and whose date of death was within 180 days of such member's last date of actual service. However, a surviving
spouse beneficiary of a deceased member who was eligible for service retirement may elect a survivor allowance in lieu of this
benefit. The pre-retirement death benefit is equal to the annual earnable compensation of the member as reported to the system for
the preceding year ending June 30, for TRS and September 30, for ERS. There is no pre-retirement death benefit available for JRF
members.
When a member withdraws from service prior to becoming vested, the member's accumulated contributions and a portion of
accumulated interest credited to the Annuity Savings account are returned to the member. The portion of accumulated interest,
which by law is not payable to the member, is transferred to the Expense Fund.
RSA issued a stand-alone financial report that includes financial statements and required supplementary information (including the
six-year trend) for the year ended September 30, 2010. Copies may be obtained by writing to:
The Retirement Systems of Alabama
P.O. Box 302150
201 South Union Street
Montgomery, AL 36130-2150
123
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
State Law established the contribution requirements and must be amended by state statute. The law provides that the Boards of
Control engage an actuary to prepare an annual valuation of the assets and liabilities of the various reserve funds.
At September 30, 2010, the number of participating employers in each system was as follows:
Cities
Counties
Other Public Entities
Universities
Post-Secondary Institutions
City & County Boards of Education
State Agencies & Other
Total
TRS
-
-
-
13
30
132
32
207
ERS
287
65
517
-
-
-
1
870
JRF
-
67
-
-
-
-
1
68
2. Summary of Significant Accounting Policies
a. Basis of Accounting
The TRS, ERS, and JRF financial statements are prepared using the accrual basis of accounting. Contributions are recognized as
revenues when earned, pursuant to plan requirements. The financial statements are prepared in accordance with requirements of
the Governmental Accounting Standards Board. Under these requirements, the TRS, ERS, and JRF are considered component
units of the State of Alabama.
b. Investments
The Boards of Control of the Systems have the responsibility and authority to invest and reinvest available funds, through the
Secretary-Treasurer and Investment Committee, in bonds, mortgage-backed securities, common and preferred stock, or other
investment vehicles with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person
acting in a like capacity and familiar with such matters would use. All plan assets are carried at fair value. Securities traded on
national or international exchanges are valued at the last reported sales price at current exchange rates. Short-term investments are
reported at cost, which approximates fair value. Mortgage-backed securities are reported based on future principal and interest
payments discounted at the prevailing interest rate for similar instruments. The fair value of real estate investments is based on
independent appraisals.
As of September 30, 2010, the TRS and ERS owned debt and equity securities of Raycom Media Corporation which represented
approximately 6.15 percent and 6.86 percent, respectively, of the TRS and ERS investments and Goldman Sachs which
represented approximately 6.63% and 6.06%, respectively, of the TRS and ERS investments.
3. Contributions Required and Contributions Made
The actuary has computed, as of the date of the latest available actuarial valuations (September 30, 2009 for TRS, ERS and JRF),
the estimated present value of benefits payable to retired members, beneficiaries and active members. The actuarial valuations for
the TRS and ERS are prepared using the entry age method, while the JRF valuation utilizes the projected unit credit method. The
present value of all expected benefits payable from each system to the present group of members and beneficiaries is calculated by
adding the present value of the expected benefits payable to the active members to the present value of the expected future
payments to retired members and beneficiaries.
As required by the Alabama State Law, the TRS, ERS, and JRF provide for employer contributions at actuarially determined rates
(expressed as percentages of annual covered payroll) that accumulate sufficient assets to pay benefits when due. The employer
contributions required to support the benefits of each system are determined following a level funding approach and consist of a
normal contribution, an accrued liability contribution, and a portion to finance administrative costs.
For the TRS and ERS, the normal contribution is determined using the “entry age normal” method. Under this method, a
calculation is made to determine the uniform and constant percentage rate of the employer contributions which, if applied to the
compensation of the average new member during the entire period of the member's anticipated covered service, would be required
124
in addition to the contributions of the member to meet the cost of all benefits payable on the member's behalf. The amortization
method is level percent open for the September 30, 2009 actuarial valuations for the TRS and the ERS. The remaining
amortization period is 30 years for the TRS, ERS-state employees, and ERS-state policemen.
For the JRF, the normal contribution is determined using the “projected accrued benefit” (unit-credit) method. Under this method,
the benefits of each individual included in an actuarial valuation are allocated by a consistent formula to valuation years. The
actuarial gains (losses), as they occur, generally reduce (increase) the unfunded actuarial accrued liability. The amortization
method is level percent open for the September 30, 2009 actuarial valuation. The remaining amortization period is 30 years.
The required contribution rate of active plan members for TRS and ERS (excluding state policemen, and certified firefighters,
police officers and correctional officers) is 5 percent of earnable compensation. State policemen are required to contribute 10
percent of earnable compensation. JRF members and certified firefighter, police officer, and correctional officer members of the
TRS and ERS are required to contribute 6 percent of earnable compensation. DROP participants continue to contribute during the
DROP period, but receive a refund of these contributions and a portion of the interest upon retirement.
For fiscal year 2010, the required contribution rate of the employer for ERS (state employees) was 11.94 percent and the rate for
TRS was 12.51 percent. The employer contribution rate for ERS state policemen and JRF was 30.57 percent and 24.20 percent,
respectively.
a. TRS and JRF
A schedule of Annual Required Contributions (ARC) and the percentage contributed (%) for the TRS and JRF (Cost-sharing
plans) is shown below (primary government is denoted by PG and discretely presented component units are denoted DPCU):
System
TRS
Primary Government
55,361
Major Discretely Presented Component Units (DPCU)
39,952
32,259
134,517
Auburn University
University of South Alabama
University of Alabama
Annual Required Contribution (ARC) *
JRF
Primary Government
38,698
32,252
128,725
36,742
30,252
123,671
$
$
$
10,814
10,326
54,042
51,638
9,880
2010
2009
2008
* Amounts in Thousands. In all instances, 100% of the ARC was contributed.
Employees' Retirement System
(Amounts in thousands)
Actuarial Valuation Date
State Employer Segment of ERS
The funded status of the State employer segment of ERS as of the latest actuarial valuation is as follows:
Actuarial Accrued Liability (AAL)
Actuarial Value of Assets
Unfunded Actuarial Accrued Liability (UAAL)
Covered Payroll
UAAL as a Percentage
of Covered Payroll
State Employees and State Policemen
7,297,454
5,163,233
2,134,221
$
$
Funded Ratio
9/30/2009
1,563,862
136.5%
$
70.8%
125
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
The schedule of funding progress, presented as required supplementary information following the notes to the financial statements,
presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative
to the actuarial accrued liability for benefits.
Contributions in 2010 for agent employer ERS were made in accordance with actuarially determined contribution requirements
determined through an actuarial valuation performed at September 30, 2007.
Actuarial Methods for ERS
Valuation Date: September 30, 2007
Actuarial Cost Method: Entry Age
Asset Valuation Method: 5 Yr Smoothed Market
Amortization Method:
Remaining Amortization Period: State Employees 20 years, State Policemen 20 years
Actuarial Assumptions for ERS
Investment Rate of Return: 8% *
Projected Salary Increases: 4.61%-7.75% *
Cost of Living Increases: None
*Includes inflation at 4.5%
The annual pension cost for the State employer segment of ERS was as follows:
Three-Year Trend Information
Pension
Obligation
Level Percent Open
Annual
Pension
Cost (APC)
Percentage
of APC
Contributed
Year
Ended
2008
2009
2010
$
160,909,372
191,837,980
191,182,726
100
100
100
Net
0
0
0
B. Other Pension Plans
The State Port Authority administers two single-employer pension plans, the Hourly Plan and the Terminal Railway Plan, for a
small number of hourly workers and railway employees. The Peace Officers Annuity and Benefit Fund is a cost-sharing multiple-
employer defined benefit pension plan that provides a small additional pension benefit to state and local peace officers beyond that
which is paid by the Employees’ Retirement System. The Clerks and Registers Supernumerary Fund is a cost-sharing multiple-
employer defined benefit pension plan that provides pension benefits to circuit clerks and registrars of courts. These pension plans
are not material to the State.
NOTE 8 - DEFERRED COMPENSATION
The State offers employees the opportunity to participate in an optional deferred compensation plan created in accordance with
Internal Revenue Service Code Section 457. The plan is available to all state employees and permits them to defer a portion of
their salary until future years. The current value of the employee contributions may be withdrawn upon termination, retirement,
death, or an unforeseeable emergency.
It is the opinion of the State's legal counsel that the State has no liability for losses under this plan but does have the duty of due
care that would be required of an ordinary prudent investor.
The Public Employees' Individual Retirement Account Fund/Deferred Compensation Plan (RSA-1) is administered and operated
by its Board of Control. All members of the Teachers' Retirement System of Alabama, Employees' Retirement System of
126
Alabama, Judicial Retirement Fund, and employees of employers eligible to participate in the Employees' Retirement System, are
eligible to participate in this plan. At September 30, 2010, net assets of the plan totaled $1,332,540,000.
State employees may also participate in a plan administered by Great-West Retirement Services. This plan is also a deferred
compensation plan organized under IRC Section 457. The plan contract requires the assets to be held in trust for the benefit of
plan participants. The State has no fiduciary responsibility for the assets and therefore does not include the plan in its reporting
entity.
NOTE 9 - POSTEMPLOYMENT HEALTH BENEFITS
In addition to the pension benefits described in the Retirement Plans note, the State provides postretirement health care benefits, in
accordance with Code of Alabama 1975, Section 36-29-10, to all retired state employees through the State Employees' Health
Insurance Plan (SEHIP) and, in accordance with Code of Alabama 1975, Section 16-25A-17, to all retired employees of state
educational institutions through the Public Education Employees' Health Insurance Plan (PEEHIP). The retiree portion of the
SEHIP is accounted for through the Alabama Retired State Employees’ Health Care Trust and the retiree portion of the PEEHIP is
accounted for through the Alabama Retired State Employees’ Health Care Trust (see plan description). Employees covered under
these two plans who retire from active service and begin receiving monthly benefits from the Employees' Retirement System of
Alabama or from the Teachers' Retirement System of Alabama may elect to continue coverage under the group insurance plan by
consenting to have deducted from their monthly benefit payment the difference in the total cost of their insurance coverage and the
portion authorized to be expended by the SEHIP or PEEHIP for coverage of such retired employees. The State Employees’
Insurance Board administers SEHIP, and the Public Education Employees’ Insurance Board administers PEEHIP.
In order to fund the ongoing costs of these other postemployment benefits (OPEB), the State has established two trust funds as
described below to comply with GASB Statements 43 and 45.
A. Plan Descriptions
The Alabama Retired Education Employees’ Health Care Trust is a multiple employer cost-sharing defined benefit health care
plan established as an irrevocable trust in 2007 by Constitutional Amendment 798. As of the latest actuarial evaluation, there were
192 participating employers.
The Alabama Retired State Employees’ Health Care Trust is a single employer defined benefit health care plan established as an
irrevocable trust in 2007 by Constitutional Amendment 798.
The Public Education Employees’ Health Insurance Board issued a stand-alone plan financial report for the Alabama Retired
Education Employees’ Health Care Trust that includes financial statements and detailed disclosures for the year ended September
30, 2010. A copy may be obtained by writing to:
The Public Education Employees’ Health Insurance Board
P.O. Box 302150
201 South Union Street
Montgomery, AL 36130-2150
The State Employees’ Insurance Board issued a stand-alone financial report that includes the Alabama Retired State Employees’
Health Care Trust financial statements and detailed disclosures for the year ended September 30, 2010. A copy may be obtained
by writing to:
State Employees’ Insurance Board
P. O. Box 304900
201 South Union Street, Suite 200
Montgomery, AL 36130-4900
127
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
B. Summary of Significant Accounting Policies
1. Basis of Accounting
Both Trusts are “other employee benefits trust funds” that operate under the accrual basis of accounting. Plan member
contributions are recognized in the period in which contributions are due. Employer contributions are recognized when earned,
pursuant to plan requirements. Benefits and refunds are recognized when due and payable in accordance with the terms of the
plan.
2. Investments
All plan assets are carried at fair value except short-term investments which are reported at cost, which approximates fair value.
Securities traded on national or international exchanges are valued at the last reported sales price at current exchange rates.
Mortgage-backed securities are reported based on estimated future principal and interest payments discounted at the prevailing
interest rate for similar instruments. Investments not traded on exchanges are valued based on the selling price of similar
investments sold in the open market. In those instances where there are no similar investments sold in the open market, an
appraisal is performed to determine the fair value of the investments.
C. Funding Policy
The cost of the teachers’ health care benefits is paid from the regular appropriations made to individual education entities. The
retired employee allocation is funded through the active employee premium. Retirees who are eligible for Medicare benefits must
pay $1.14 per month for the Hospital/Medical coverage while those who are not eligible for Medicare must pay $97.54 per month
for the coverage. Additional premiums are paid for dependents. Optionally, the retirees may use this insurance allocation to
purchase two plans of optional insurance offered by PEEHIP with no out-of-pocket cost. The Medicare Part D subsidy for fiscal
year 2010 was $27,959,472. Of this amount, $1,193,738 was an on-behalf payment for the primary government of the State of
Alabama and $949,976 on-behalf payments of the major discretely presented component units of the State of Alabama. Most of
the remaining amount was on-behalf payments for local school boards that are not part of the State’s reporting entity.
The State provides health care benefits for retired state employees through SEHIP. For retirees who retired prior to October 1,
2005, the State pays 100 percent of the premium for a retiree who is over 65 and eligible for Medicare. The State pays a portion of
the premium for a retiree who is under 65. Under the SEHIP statute, the State contribution per month per retiree is funded on a
pay-as-you-go basis through the active employee premiums each agency pays for its active employees. COBRA insurance is also
available to state employees who terminate state service, but the employee is liable for the premiums. For retirees, who retire on
or after October 1, 2005 except for disability, Act 2004-648 provides that the State contribution for retiree health insurance
premiums shall be based on years of service. The State contribution to the health insurance premium shall be reduced by two
percent for each year of service less than twenty-five and increased by two percent for each year of service over twenty-five. The
retiree is responsible for the amount of contribution not covered by the State. Also, the State may make additional contributions.
Additional funds were not contributed during fiscal year 2010. The Medicare Part D retiree drug subsidy for fiscal year 2010 was
$6,794,000.
1. Annual OPEB Cost and Net OPEB Obligation
Government Accounting Standards Board Statement No. 45, Accounting and Financial Reporting by Employers for
Postemployment Benefits Other than Pensions, requires additional reporting and disclosures for OPEB plans.
The PEEHIP is a cost-sharing multiple-employer plan. Contribution requirements are determined by statute. In all instances, the
state and its discretely presented component units paid 100% of the statutorily determined contribution requirements. Therefore,
the State has no net OPEB obligation related to the PEEHIP.
128
The SEHIP is a single employer plan. The following OPEB amounts are for the SEHIP:
(Amounts in thousands)
Annual required contribution
Interest on net OPEB obligation
Adjustment to ARC
Annual OPEB cost
Contributions made
Increase in net OPEB obligation
Net OPEB obligation, beginning of year
Net OPEB obligation, end of year
Primary
Government
Component
Units
$
$
192,489
14,330
(10,230)
196,589
(96,646)
99,943
284,913
384,856
$
$
17,129
1,275
(910)
17,494
(8,599)
8,895
27,192
36,087
Percentage of annual OPEB cost contributed: 49%
Fiduciary
$
$
1,658
124
(88)
1,694
(833)
861
2,479
3,340
2. Funded Status and Funding Progress
The funded status of the plan for the retired state employees as of the most recent actuarial valuation dated September 30, 2009,
was as follows:
Retired State Employees' Health Care Trust
(Amounts in thousands)
Actuarial Valuation Date
Actuarial Accrued Liability (AAL)
Actuarial Value of Assets
Unfunded Actuarial Accrued Liability (UAAL)
Funded Ratio
Covered Payroll
(SEHIP)
09/30/2009
$
$
4,142,076
88,588
4,053,488
2%
$
1,607,097
UAAL as a Percentage
of Covered Payroll
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into
the future. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are
subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. The
schedule of funding progress, presented as required supplementary information following the notes to the financial statements,
presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative
to the actuarial accrued liabilities for benefits.
252.2%
3. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer
and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing
of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of
assets, consistent with the long-term perspective of the calculations. The actuarial value of assets was determined using
techniques that spread the effects of short-term volatility in the market value of investments over a five year period.
129
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
The actuarial methods and significant assumptions used to determine the ARC for fiscal year 2010 are as follows:
Actuarial Methods for Retired State Employees' Health Care Trust
Valuation Date:
September 30, 2007
Projected Unit Credit
Actuarial Cost Method:
Market Value of Assets
Asset Valuation Method:
Level Percent of Pay
Amortization Method:
Remaining Amortization Period:
30 Years
Open
Period Closed/Open:
5.00%
Actuarial Assumptions for Retired State Employees' Health Care Trust
Investment Rate of Return:
Medical Cost Trend Rate:
Medicare Eligible
Pre-Medicare
Ultimate Trend Rate:
Medicare Eligible
Pre-Medicare
Year of Ultimate Trend Rate:
Dental Trend Rate:
5.00%
5.00%
2016
5.00%
9.50%
11.00%
*Includes Inflation at 4.5%
The assumed investment rate of return reflects the fact that although, as of September 30, 2007, the Plan does not have assets in
trust solely to provide benefits to retirees and their beneficiaries, a trust has been established along with a policy to make regular
contributions representing a partial payment toward the ARC each year. If the Plan starts fully pre-funding benefits, the discount
rate may be increased to reflect equity investment the fund may have after full pre-funding begins. This investment rate of return
assumption is independent of the inflation assumption.
Annual Required Contribution*
(Amounts in Thousands)
Primary Government
Major Discretely Presented Component Units
4. Trend Information
The following table details employer contributions to the Alabama Retired Education Employees’ Health Care Trust:
The employer contributions and annual OPEB cost of the SEHIP is presented in the table below.
Auburn University
University of South Alabama
University of Alabama
* 100% of the statutorily required contributions were contributed.
8,130
4,935
22,317
8,903
5,598
24,302
9,214
6,078
25,573
$
17,284
$
15,758
$
15,033
2010
2009
2008
(Amounts in thousands)
Employer
Contributions
$
137,498
105,967
106,078
2008
2009
2010
Annual
OPEB
Cost
343,668
214,381
215,777
$
Percentage
of Annual OPEB
Cost Contributed
40%
49%
49%
Net
OPEB
Obligation
$
206,170
314,584
424,283
130
NOTE 10 - RELATED ORGANIZATIONS
The State's officials are responsible for appointing a majority of the members of the boards of other organizations, but the State's
accountability for these organizations does not extend beyond making appointments. The State appoints the nine-member board of
the Private Colleges and Universities Facilities Authority and a majority of the eleven member board of the Alabama Family Trust
Corporation.
NOTE 11 - JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS
A. Joint Ventures
The Tennessee-Tombigbee Waterway Development Authority is a joint venture created by a compact executed between the State
of Alabama and the States of Mississippi, Tennessee, and Kentucky. Its purpose is to develop and promote a navigable waterway
between the Tennessee and Tombigbee rivers and provide a nine foot deep navigable channel. The State of Alabama provided
$119,000 and $135,000 to the Authority for fiscal year 2010 and fiscal year 2009, respectively. The fiscal year of the Tennessee-
Tombigbee Waterway Development Authority ends on December 31. Key financial data for the Authority is shown below.
(Amounts in Thousands)
Fund Balance
Revenues
Expenditures
2010
212
$
337
322
2009 *
197
$
388
364
*Revised
Complete financial statements for the Authority can be obtained at P. O. Drawer 671, Columbus, MS 39703.
B. Jointly Governed Organizations
The Historic Chattahoochee Commission is a jointly governed organization that was created by a compact executed between the
State of Alabama and the State of Georgia. The Commission had $339,000 in revenues in 2010.
NOTE 12 - RELATED PARTY TRANSACTIONS
The Montgomery Downtown Redevelopment Authority, a public corporation, issued $65,200,000 of bonds in 1988 to construct
the Gordon Persons office building. These bonds were partially refunded in 1992 with a new bond issue of $66,150,000. The
Series 1992 bonds were refunded in 2002 with a new bond issue of $43,265,000. The bonds' final maturity is on October 1, 2013.
Members of the board of directors of the Authority are appointed by officials of the City of Montgomery, but the Authority is not a
part of the City's reporting entity and is therefore considered a separate "stand-alone government." The bonds issued constitute
conduit debt obligations of the Authority, and are therefore reported as revenue bond debt of the State. The Authority has also
issued conduit debt on behalf of other governments and third parties, none of which is reported in these financial statements. The
State operates and maintains the building and has entered into an agreement with the Authority whereby the rental payments from
state agencies occupying the building are paid to the Authority, which then uses the money to pay the bond principal and interest.
The payments to the Authority are reported by the State as debt principal and interest expenditures.
These financial statements exclude certain foundations and other organizations affiliated with state colleges and universities.
While the purpose of these foundations and associations is to operate exclusively for the benefit of the colleges and universities,
such organizations do not constitute component units under the provisions of Governmental Accounting Standards Board (GASB)
Statement No. 14, "The Reporting Entity" and GASB Statement No. 39, an amendment to GASB 14. These are: the University of
Alabama at Huntsville Eminent Scholar Foundation, the Alabama Engineering Foundation, the UAH Alumni Association, the
UAH Athletic Association, the University of South Alabama Medical Science Foundation, the Alabama A & M Foundation, the
North Alabama Center for Educational Excellence, the Alabama A&M Research Institute, the University of Alabama Birmingham
131
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
Educational Foundation (UABEF), the University of Alabama Health Services Foundation, P.C. (HSF), the University of Alabama
Birmingham Health System, and the Valley Foundation.
The UABEF made contributions to the University of Alabama at Birmingham (UAB) of $4,365,000 during the 2010 fiscal year.
UABEF leases certain facilities to UAB with annual rental expense of approximately $1,932,000 for 2010.
An affiliation agreement documents the relationship between HSF and UAB. The operating revenues of UAB include
approximately $39,668,000 of funding from HSF in 2010, which is used to support the educational and research activities of UAB.
UAB and HSF have entered into an agreement which established a common management group, the UAB Health System. The
purpose of this agreement is to provide common management for their existing and future health care delivery operations. UAB
contributed $6,313,000 during 2010 to the UAB Health System Board.
The South Alabama Medical Science Foundation exists for the purpose of promoting education and research at the University of
South Alabama. The Foundation reimburses the University for certain administrative expenses and other related support services.
Total amounts received for such expenses were approximately $1,128,000 for 2010.
NOTE 13 - CONTINGENCIES
A. Grants
The State receives federal grants for specific purposes that are subject to review and audit by the grantor agencies. Entitlement to
these resources is generally conditional upon compliance with the terms and conditions of grant agreements and applicable federal
regulations, including the expenditure of resources for allowable purposes.
Federal grantor agencies from time to time review state records to determine whether the State has complied with the terms and
conditions of grant agreements and federal regulations. Any disallowance resulting from a federal audit may become a liability of
the State but cannot be reasonably estimated at this time. It is believed that any liability resulting from a determination of
noncompliance will not materially affect the State's financial condition.
B. Tobacco Settlement
As a party to a successful multi-state legal settlement with the tobacco industry, the State received $97.2 million in fiscal year
2010, $116.6 million in fiscal year 2009, $106.1 million in fiscal year 2008, $99.0 million in fiscal year 2007, $94.6 million in
fiscal year 2006, $101.9 million in fiscal year 2005, $102.6 million in fiscal year 2004, $118.6 million in 2003 and $224.7 million
in both 2002 and 2001. This settlement money is intended to compensate the State for smoking related health care costs incurred
by various state programs. Because the exact amount of the future settlement amounts is not measurable, no receivable for these
amounts is recorded in these financial statements.
C. Litigation
The State is a party to numerous legal proceedings that occur in the normal course of governmental operations, some of which
involve potentially significant amounts. The lawsuits involving potentially significant amounts are described below. Other
proceedings involving amounts that, when aggregated, have no material effect on the accompanying government-wide financial
statements, may have an impact on the related individual state agencies and funds. The monetary impact, if any, of litigation
resulting in adverse rulings is usually addressed in subsequent state budgets and modifications of state laws. Due to the
uncertainty involving the ultimate outcome and amounts of the unresolved litigation described below, no provision for potential
liability has been recorded in the accompanying financial statements.
Blaylock, et al. v. American Tobacco Co., et al., filed in the Circuit Court of Montgomery County is an arbitration proceeding
concerning the Master Settlement Agreement (MSA) that was negotiated with the tobacco industry in 1998. The MSA was
entered into as a settlement of litigation brought against the participating tobacco products manufacturers by the Attorney
Generals of the signatory states to reimburse the states for health care expenses in treating their citizens affected by the use of
tobacco products sold by the manufacturers. The MSA contains a provision that allows an adjustment to reduce the payments by
132
the tobacco industry if the MSA has been determined to be a significant factor in the loss of market share by the manufacturers.
States will not be subject to a reduction in their payments if it is determined that they diligently enforced their escrow statutes. The
2003 payment has a potential adjustment of $1.2 billion nationwide that could be applied to the states that are determined not to
have diligently enforced their escrow statutes during 2003. The question of whether the state was diligent will be determined by
an arbitration panel consisting of three retired Article III federal judges. The arbitration commenced in the fall of 2010 with
hearings on preliminary matters and is currently ongoing. Alabama’s potential share of the adjustment could be as much as $100
million if Alabama is deemed to have not diligently enforced its escrow statutes during 2003. The states are attempting to work
together in the negotiations and they are sharing in the preparations for the arbitration.
In March 2002 the Alabama Public School and College Authority (the "Authority") and JPMorgan Chase Bank ("JPMorgan")
entered into a series of agreements (collectively, the "Swap Options") in connection with the Authority's Series 1998 Bonds, Series
1999-A Bonds, Series 1999-C Bonds and Series 1999-D Bonds (together, the "Authority Bonds"). The Swap Options were
amended in 2003. Under the terms of the Swap Options the Authority received lump sum payments of approximately $12.6
million, and JPMorgan was granted an option to require the Authority to enter into fixed rate payer swaps in connection with
variable rate refundings of the Authority Bonds. JPMorgan gave notice of exercise of the first option in June 2008 and has since
given notice of the exercise of each of the other options. From July 2008 through October 2008, prior to the exercise date for the
first Swap Option, the Authority initiated discussions with JPMorgan about the Swap Options and raised concerns about the
structure and legality of the Swap Options. In October 2008 the Authority filed a declaratory judgment action in federal district
court requesting the court to determine the rights and obligations of the parties under the Swap Options. This case was settled in
December 2010. The parties filed a Joint Motion for Voluntary Dismissal and an Order was granted dismissing the case.
Lynch, et al. v. State of Alabama, et al., is a class action filed in the U.S. District Court, Northern District of Alabama, on March
13, 2008. This class action suit is brought on behalf of public school students who maintain that their civil rights have been
violated by the manner in which Alabama’s public schools are funded. The plaintiffs are seeking a declaratory judgment that the
property tax restrictions in the Alabama Constitution violate Title VI of the Civil Rights Act, 42 U.S.C. Section 2000d et seq., and
the Constitution of the United States. They also seek an injunction against enforcing the current property tax laws until the
Governor and legislature enact tax reforms and adequate funding of education. The financial impact is not determinable at this
time, but is potentially significant. A trial began in U. S. District Court on March 21, 2011 and is ongoing.
The State of Alabama has been involved in settling lawsuits challenging the constitutionality of the franchise tax in effect before
2000. The U. S. Supreme Court ruled that Alabama’s franchise tax scheme unconstitutionally discriminated against interstate
commerce. The State is continuing to negotiate settlements with corporations for potential refunds totaling $87,000,000 plus
accumulated interest of $150 million to $200 million. The State Legislature enacted laws to remedy the significant loss of
revenue.
On August 14, 2009, Colonial Bank failed and was taken over by the State Banking Department and the Federal Deposit Insurance
Corporation. The State of Alabama Department of Revenue entered final tax assessments totaling $154,600,000 and recorded
liens against various entities within the Colonial Bank family of entities. Appeals from those assessments are pending in the
Administrative Law Division of the Department of Revenue, the Montgomery Bankruptcy Court, and in the FDIC receivership in
Dallas, Texas.
The State of Alabama Department of Revenue is also involved in significant tax-related lawsuits or actions that challenge the
legality of certain taxes or challenge other provisions of tax laws and procedures. Other cases challenge tax assessments made by
the Department. These cases have a significant combined potential refund liability or reductions of assessments. Adverse rulings
in these cases could also reduce future revenues.
Eugene Crum, Jr., et al. v. State of Alabama, et al., was an employment discrimination case filed in 1994 against various state
agencies and the State Personnel Department. The Crum case alleges discrimination in all aspects of employment. In March 2006,
the State filed a request to the Court for a ruling on the class certification issue citing, in part, the continuing financial burden that
expert updates and responses has placed on the State. The Court granted the State’s “Motion for a Ruling” in May 2006. The
Court recently denied class certification to plaintiffs and defendants. Any individual lawsuits remaining are not considered a
significant liability to the state.
133
STATE OF ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
For the Fiscal Year Ended September 30, 2010
NOTE 14 - DONOR-RESTRICTED ENDOWMENTS
The Uniform Management of Institutional Funds Act, as adopted in Alabama, permits the boards of the educational institutions of
the State to allocate an amount of realized and unrealized endowment appreciation as the boards determine to be prudent for
donor-restricted endowments. The colleges’ policies are to retain the endowments realized and unrealized appreciation with the
endowments after the spending rate distributions. Endowments’ earnings are classified in accordance with donor restrictions and
are reported in the component units as net assets restricted for permanent trust – expendable or non-expendable as appropriate.
The Boards of the University of Alabama and University of South Alabama approved a spending rate of 5% of a moving three-
year average of the fair (unit) value. The other four-year colleges have approved similar spending rate policies with rates ranging
between 3 and 6%. The net endowment appreciation of the four-year colleges at September 30, 2010 was $45,714,000.
NOTE 15 - SUBSEQUENT EVENTS
Primary Government
On December 9, 2010, the Alabama State Port Authority issued $106,045,000 Series 2010 Docks Facilities Revenue Bonds. The
interest rates on the bond range from 6% to 6.25% and will mature on October 1, 2040. The bonds refund the outstanding
$79,298,000 of the 2008-B and 2009-A debt.
In November, 2010, Athens State University, a subsidiary of the Alabama College System, executed a private placement bond
issue in the amount of $1,860,000 to purchase a strip mall located adjacent to campus.
Component Units
From October 1, 2010 through December 17, 2010, the Alabama Housing Finance Authority called approximately $30,960,000 of
bonds prior to their scheduled maturities in the single family bond program.
The Housing Finance Agency Hardest Hit Fund (HHF) is funded through the U.S. Department of Treasury to provide funds to help
families in states hit hardest by the foreclosure crisis in conjunction with high unemployment rates. Alabama, through the
Alabama Housing Finance Authority, was added in the third round of potential funding in August 2010. In September 2010, the
Authority submitted a proposal for $60.6 million of HHF funds. Subsequently, additional funds totaling $101.9 million were made
available to the State of Alabama to be administered by the Authority. After initiating a pilot program in December 2010 the
program is scheduled to begin in February 2011. The Authority is currently designing and planning its implementation. The
Authority has drawn $8 million in HHF funds to be used to fund the program as of the date the financial statements were available
to be issued.
Subsequent to year-end, Moody's Investor Services downgraded Pallas Capital Corporation’s guaranteed investment contracts
(GICs) below the Alabama Housing Finance Authority’s contractual requirements. All amounts relating to Pallas’ GICs have been
sold and reinvested in money market funds, within each respective single-family bond issue.
On November 9, 2010, the University of Alabama at Tuscaloosa issued the Series 2010 B, C, and D General Revenue Bonds
totaling $149,460,000. The proceeds from these bond issuances will fund various capital projects.
In November, 2010, the University of Alabama at Birmingham issued $54,650,000 Series 2010A General Revenue Bonds. The
bonds pay interest at varying rates 2% to 4.25% with principal due annually through October 1, 2034. In November, 2010, the
University issued $52,975,000 In Series 2010B General Revenue Bonds. The bonds pay interest at varying rates 1% to 5.2% with
principal due annually through October 1, 2030. In November, 2010, the University issued $34,550,000 in Series 2010C General
Revenue Bonds. The bonds pay interest at varying rates 2% to 4% with principal due annually through October 1, 2027.
In November, 2010, the Alabama Public School and College Authority issued $53,000,000 Series 2010-C Tax-Exempt Capital
Improvement Direct Loan Bonds and $13,500,000 Series 2010-D Taxable Capital Improvement Direct Loan Bonds. The interest
rates on the 2010-C and 2010-D bonds range from 2.48% to 3.77%. The bonds will be payable on December 1 each year. The
maturity date of the bonds is December 1, 2020.
134
On November 30, 2010, the Alabama Water Pollution Control Authority issued $36,850,000 Series 2010-C Revolving Fund Loan
Refunding Bonds. The interest rates on the bonds range from 2% to 4% and the bonds will mature on August 15, 2023. The
bonds are issued for the purpose of refunding, on a current basis, $61,795,000 Series 2000 bonds.
On December 20, 2010, the Declaratory Judgment Action from 2008 in regard to the March 2002 interest swap agreement along
with the 2003 amendments between Alabama Public School and College Authority and JP Morgan Chase Bank N.A., was settled.
The Authority made a payment to JP Morgan of $19,000,000 in return for a full settlement of claims and mutual release from the
swap agreement.
On October 29, 2010, the Alabama Higher Education Loan Corporation (AHELC), a nonmajor component unit, paid in full at par
plus accumulated interest $75,100,000 Series 2006-A1 and Series 2006-A2 bonds. The Health Care and Education Reconciliation
Act (HCERA) of 2010 was signed into law on March 30, 2010. HCERA eliminates the origination and/or guarantee of FFELP
loans, effective July 1, 2010. HCERA does allow lenders to make subsequent disbursements on loans originated on or before June
30, 2010. Since the Corporation cannot fund any new FFELP loans after June 30, 2010, a strategic decision was made to sell the
entire FFELP Loan Portfolio and utilize the proceeds of that sale and additional equity to redeem its outstanding bonds and
eliminate all of the Corporation’s debt. The loan portfolio was offered for sale through a competitively bid transaction. On
October 19, 2010, the loans were sold to a reputable lender and servicer of FFELP loans who also agreed as a part of the
transaction to honor all of the AHELC borrower benefits that were attached to the loans.
On November 17, 2010, the Alabama Revolving Loan Fund Authority issued $20,755,000 Series 2010 Special Obligation and
Refunding Taxable Bonds. The interest rate on the bond ranges from 2.5% to 6% with principal due annually on March 1. The
maturity date of the bonds is March 1, 2030. The bonds will refund $8,330,000 Series 2000 bonds.
Subsequent to September 30, 2010, the University of North Alabama refinanced $10,355,000 of the 1999-A General Fee Revenue
Bonds and issued new debt in the amount of $25,290,000 in Build America Bonds for the purpose of constructing a Science and
Engineering Technology Facility.
135
STATE OF ALABAMA
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule
All Budgeted Funds
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
REVENUES
Taxes
Licenses, Permits and Fees
Fines, Forfeits, and Court Settlements
Investment Income
Federal Grants and Reimbursements
Other Revenues
Total Revenues
EXPENDITURES
Administrative Office of Courts
Agriculture and Industries
Attorney General
Auditor
Commission on Higher Education
Corrections
Economic and Community Affairs
Education
Emergency Management
Examiners of Public Accounts
Finance
Governor
Human Resources
Industrial Relations
Legislature
Medicaid
Mental Health
Postsecondary Education
Public Health
Public Safety
Public Service Commission
Rehabilitation Services
Revenue
Secretary of State
Transportation
Treasurer
Youth Services
Colleges and Universities
Other
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Bonds Issued
Insurance Recovery Proceeds
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Budgeted Amounts
Original
Final
GENERAL FUND
Actual
(Budgetary
Basis)
$
1,083,120
174,205
27,396
26,572
-
776
1,312,069
$
1,045,683
168,184
26,449
25,654
-
749
1,266,719
$
955,771
153,723
24,175
23,448
-
684
1,157,801
163,039
15,165
11,662
775
-
269,176
16,201
-
7,715
12,009
12,433
5,243
-
2,297
29,329
349,847
-
-
46,414
71,292
-
28
92
3,176
-
2,441
14,080
-
216,625
1,249,039
17,680
295,437
(313,136)
-
19
(17,680)
0
$
162,335
14,614
10,398
704
-
264,335
11,545
-
5,631
11,888
8,987
4,140
-
2,072
22,858
315,254
-
-
45,380
64,193
-
27
72
2,790
-
2,007
13,580
-
196,301
1,159,111
(1,310)
270,034
(313,039)
-
19
(42,986)
(44,296)
164,556
16,622
12,957
861
-
254,028
18,861
-
8,591
13,343
13,815
4,473
-
2,553
32,653
342,847
-
-
50,737
79,313
-
31
102
3,040
-
2,712
15,644
-
234,470
1,272,209
39,860
306,015
(345,875)
-
-
(39,860)
0
$
136
Variance
with Final
Budget
$
(89,912)
(14,461)
(2,274)
(2,206)
-
(65)
(108,918)
704
551
1,264
71
-
4,841
4,656
-
2,084
121
3,446
1,103
-
225
6,471
34,593
-
-
1,034
7,099
-
1
20
386
-
434
500
-
20,324
89,928
(18,990)
(25,403)
97
-
-
(25,306)
(44,296)
$
EDUCATION TRUST FUND
Budgeted Amounts
Original
Final
5,747,706
$
51
-
-
-
260
5,748,017
-
-
-
-
20,748
-
-
3,881,712
-
7,450
-
-
-
-
-
-
-
408,757
17,491
-
-
37,017
-
-
-
-
63,329
1,131,469
125,042
5,693,015
55,002
5,226,221
$
46
-
-
-
237
5,226,504
-
-
-
-
18,778
-
-
3,509,865
-
6,742
-
-
-
-
-
-
-
369,924
15,829
-
-
33,501
-
-
-
-
62,100
1,023,978
132,815
5,173,532
52,972
Actual
(Budgetary
Basis)
5,216,220
$
46
-
-
-
236
5,216,502
-
-
-
-
16,698
-
-
3,502,452
-
6,741
-
-
-
-
-
-
-
364,420
15,717
-
-
33,499
-
-
-
-
60,204
1,023,978
127,384
5,151,093
65,409
420
(55,422)
-
-
(55,002)
$
0
382
(53,354)
-
-
(52,972)
$
0
382
(53,354)
-
-
(52,972)
12,437
Variance
with Final
Budget
$
(10,001)
-
-
-
-
(1)
(10,002)
-
-
-
-
2,080
-
-
7,413
-
1
-
-
-
-
-
-
-
5,504
112
-
-
2
-
-
-
-
1,896
-
5,431
22,439
12,437
0
-
-
-
0
12,437
$
Budgeted Amounts
Original
Final
EARMARKED FUNDS
Actual
(Budgetary
Basis)
$
1,315,855
395,957
23,211
19,501
9,576,243
923,764
12,254,531
$
1,598,772
481,090
28,202
23,694
11,635,198
1,122,380
14,889,336
22,251
23,216
7,970
-
4,725
181,556
418,377
1,783,819
131,453
3,451
137,474
-
1,847,070
107,356
-
4,602,845
879,872
64,476
769,081
97,319
21,871
129,403
136,861
19,838
1,613,972
3,321
26,233
100,044
1,249,623
14,383,477
(2,128,946)
28,228
24,024
9,027
100
4,725
185,841
499,233
2,009,586
166,455
5,754
139,920
26
2,212,247
111,522
-
5,637,045
928,189
71,455
774,896
113,326
22,047
133,751
140,468
19,838
3,035,669
3,850
29,863
100,098
1,375,855
17,783,038
(2,893,702)
2,128,946
-
-
-
2,128,946
$
0
2,586,684
-
303,854
3,164
2,893,702
$
0
$
1,257,005
378,248
22,173
18,629
9,147,958
882,451
11,706,464
22,433
18,568
8,444
100
3,914
172,066
345,448
1,461,311
87,376
1,837
83,491
26
1,961,426
85,133
-
4,954,852
859,040
55,503
650,435
80,831
16,122
107,532
134,449
3,182
1,361,689
2,741
25,797
91,946
1,093,210
13,688,902
(1,982,438)
2,033,732
-
303,854
3,164
2,340,750
358,312
137
Variance
with Final
Budget
$
(341,767)
(102,842)
(6,029)
(5,065)
(2,487,240)
(239,929)
(3,182,872)
5,795
5,456
583
-
811
13,775
153,785
548,275
79,079
3,917
56,429
-
250,821
26,389
-
682,193
69,149
15,952
124,461
32,495
5,925
26,219
6,019
16,656
1,673,980
1,109
4,066
8,152
282,645
4,094,136
911,264
(552,952)
-
-
-
(552,952)
358,312
$
BUDGETARY FUNDS
General
Fund
Education
Trust
Fund
Earmarked
Funds
Alabama
Trust
Fund
$
(44,296)
$
12,437
$
358,312
-
-
(358,312)
$
5,125
(86,026)
(22,567)
(38,047)
324
13,800
-
2,040
(3,707)
3,033
(861)
1,424
129
(139,332)
(22,985)
967
-
-
132
(81)
-
172,027
178,170
0
2,951,416
-
3,129,586
$
STATE OF ALABAMA
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule
Budget-to-GAAP Reconciliation
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Net Change in Fund Balance
Reconciliation to GAAP Basis:
Perspective Differences:
Reclassification of budgetary funds to
GAAP financial statement fund types
Basis Differences:
Accruals of revenues and
other revenue adjustments
Accruals of expenditures, expenses and
other non-budgeted items
To remove asset purchases treated
as budgetary expenditures
To remove encumbrances recognized
as expenditures
To recognize prior budget year
expenditures/expenses
To remove budget expenditures/expenses
not accrued as liabilities
Entity Differences:
Add net operating results for
funds not budgeted
Net Change in Fund Balances/Net Assets - GAAP Basis
Fund Balances/Net Assets, October 1, 2009, as Restated
Increase (Decrease) in Inventory
Fund Balances/Net Assets, September 30, 2010
$
222,142
69
82,879
$
(221,541)
-
(244,526)
138
FINANCIAL STATEMENT CLASSIFICATION
Public
Road and
Bridge
Fund
Public
Welfare
Trust
Fund
Medicaid
Fund
Nonmajor
Governmental
Funds
Enterprise
Funds
Internal
Service
Funds
Pension (and
Other Employee
Benefit)
Trust Funds
Private-
Purpose
Trust
Funds
Component
Units
$
53,167
$
132,217
$
2,494
$
156,728
$
(56,210)
$
(16,909)
$
(11,641)
$
(541)
$
93,882
19,931
(45,408)
(31,201)
(86,360)
7,145
245,057
43
14,174
(366)
164
3,508
(12,955)
(144,835)
49,336
(4,805)
6,245
761
4,573
-
-
-
716
823
11,195
616
-
4,030
10,654
43,411
4,708
39,121
(150)
982
399
52
5,746
1,360
(6,576)
(2,385)
(71,885)
(134)
(691)
(224)
-
(274,995)
(7,670)
15,680
(178)
19,926
550
19
91
(22)
42,065
78
46,319
(930)
52,034
(29)
(1,200)
17,499
262,327
(65,763)
(71,505)
8,614
12,579
1,665,417
1,660,537
6,989
7,403
733,940
612,749
(8,355)
-
37,964
$
$
418,452
2,314
472,800
83,872
-
82,672
$
$
1,246,600
24
1,508,951
1,199,820
-
1,128,315
$
144,763
-
157,342
$
26,069,387
-
27,729,924
$
1,134,966
-
1,142,369
$
6,085,671
-
6,698,420
$
139
STATE OF ALABAMA
REQUIRED SUPPLEMENTARY INFORMATION
Notes on Budgetary Accounting and Reporting
For the Fiscal Year Ended September 30, 2010
Budgetary Process
Formulation of the budget begins with the preparation of estimates of expenditure requirements for the next fiscal year by the
administrative head of each budgeted agency and institution. These estimates are submitted annually to the Executive Budget
Office of the Finance Department on or before the first day of the third month preceding each regular session of the Legislature.
The budget is prepared by program elements for each agency. Requested changes in programmatic expenditures over the prior
fiscal year must be explained, and proposed capital expenditures must be justified as required by the Executive Budget Office.
The budget document, as finally developed by the Governor, is published and transmitted to the Legislature on or before the
second legislative day of each regular session. For each agency, comparative summaries of appropriations and revenues are
presented for the prior year, current year, the agency's request for the next year, and the Governor's recommendation for the next
year. The recommended appropriation bills indicate the programmatic appropriation to each agency and the source of funds from
which each appropriation is to be paid. The Legislature then legally enacts the State budget into law through the passage of a
number of bills as Appropriation Acts. Some conditional appropriations are included in the Appropriation Acts. The agencies do
not include these conditional amounts in the original budget, unless the conditions have been met before the fiscal year begins.
The General Fund appropriations were reduced as a result of proration in the amount of $184 million and then proration was
reduced by $31 million later for a net proration of $153 million. Approximately $101 million of supplemental appropriations and
$3 million of conditional and other appropriations were distributed to various agencies from the General Fund. The Department of
Corrections and the Medicaid Agency received supplemental appropriations in the amounts of $52 million and $42 million,
respectively. Some expenditures are required by law to be fully funded and estimated amounts are approved in the General Fund
appropriation bill. Increases to these estimated amounts do not require a new bill and are included as other appropriations.
Original appropriations to the Departmental Emergency Fund are included in the original budget. Emergency appropriations
cannot exceed two percent of the total General Fund appropriation bill.
The Education Trust Fund appropriations were reduced twice as a result of proration in the amounts of $428 million and $114
million. During fiscal year 2010, $20 million of supplemental appropriations were distributed from the Education Trust Fund.
Veterans Affairs received a supplemental appropriation of $14 million.
The Appropriation Acts budget by agency and program rather than by GAAP basis funds. The State funds its budgetary activities
under three budgetary fund groups. The first is the General Fund, which includes many of the general operations of the three
branches of government. The second is the Education Trust Fund (ETF), which is restricted to funding all levels of educational
activity in the State. The third budgetary group is referred to in the budget documents as Earmarked Funds. The Earmarked Funds
group includes the operations of most governmental funds of both the primary government and the component units, as well as
portions of some proprietary and fiduciary operations.
The Appropriation Acts do not include a revenue budget. At the time of their passage, estimates prepared by legislative and
executive branch professional staff assure the legislature that adequate revenues will be available to meet the level of
appropriations approved. The Appropriation Acts specify that in addition to the appropriations made, all gifts, grants, or
contributions in excess of the amount appropriated are automatically appropriated to be used for the purposes specified in the gift,
grant, or contribution. This includes federal funds which are included in the Earmarked Funds. Most of the $3.4 billion increase
in the Earmarked Funds is increased federal funds.
Numerous statutes exist which restrict the use of most state revenue sources to specific uses. The General Fund is funded by a
wide variety of taxes, licenses, and interest income. The ETF is funded primarily by income taxes and sales taxes. The Earmarked
Funds are generally funded by a combination of federal funds, local funds, and specific taxes and licenses. State law also requires
that if revenues actually received are inadequate to fund the appropriations, then the appropriations must be prorated to the level
that the revenues will support. For the Budgetary Comparison Schedule, the budgeted revenues consist of the amount of budgeted
expenditures allocated among the revenue categories in proportion to the actual amounts received.
140
STATE OF ALABAMA
REQUIRED SUPPLEMENTARY INFORMATION
Notes on Budgetary Accounting and Reporting
For the Fiscal Year Ended September 30, 2010
Budgetary Control
The legal level of control is the agency and program specified in the Appropriation Acts. For example, “Lab Analysis and Disease
Control” and “Agricultural Inspection Services” are two programs within the agency of Agriculture and Industries. Below this
legal level of control, the professional management of the Finance Department, under the authority of the Governor’s policy,
exercises budgetary control at the fund and object level. Each agency must submit an operations plan detailing planned
expenditures down to the object level, and then must follow that plan or explain why a change must be made. Allotments of
appropriations are made quarterly based on the plans of operations submitted by the agencies.
The Department of Finance enforces both the legal level and the professional management level of budgetary control through
automated edits which must be complied with before making expenditures against an appropriation. A change between objects
within appropriations for programs (financial management level) must have the approval of the Budget Officer and the Finance
Director.
The Budget Management Act legally authorizes the transfer of appropriations between programs within an agency with the
approval of the Governor. Any transfers approved by the Governor must be reported to the Legislature. Transfers between
agencies, but within the same program, may be made pursuant to interagency agreements executed for the purposes of
accomplishing the objectives for which the Legislature made the appropriation. These interagency agreements must also be
approved by the Governor. Under the Budget Management Act, the Governor cannot create new budget authority; he can only
transfer existing authority.
Both the Constitution of Alabama of 1901 and the statutes require a balanced budget for annual financial operations. The Finance
Department monitors revenue projections during the year to ensure that adequate funds will be available to meet budgeted
expenditures. If cash collections do not meet budget projections, the Governor is required to prorate appropriations and restrict
allotments to prevent an overdraft or budget deficit in any fiscal year. Within the Alabama Trust Fund, a General Fund Rainy Day
Account and an Education Trust Fund Rainy Day Account have been created by constitutional amendment. If proration is
declared for the General Fund or the Education Trust Fund, then oil and gas capital payments in the Alabama Trust Fund will be
used to fund withdrawals from the Rainy Day Accounts. If proration is declared for the General Fund, Rainy Day withdrawals
may not exceed the lesser of (a) ten percent of the previous fiscal year’s General Fund appropriations less the total amount of any
prior years’ withdrawals from the account which have not been repaid to the account, or (b) the average of the estimated available
revenue for the General Fund certified by the Finance Director and the Legislative Fiscal Officer prior to the third legislative day
of the Regular Session. If proration is declared for the Education Trust Fund, Rainy Day withdrawals may not exceed the lesser
of (a) six and one-half percent of the previous fiscal year’s Education Trust Fund appropriations less the total amount of any prior
years’ withdrawals from the account which have not been repaid to the account, or (b) the average of the estimated available
revenue for the Education Trust Fund certified by the Finance Director and the Legislative Fiscal Officer prior to the third
legislative day of the Regular Session. The Rainy Day Accounts must be replenished within 10 years for the General Fund
withdrawals and 6 years for the Education Trust Fund withdrawals. The General Fund was prorated by 12% and then reduced by
2% in 2010. The Education Trust Fund was prorated by 7.5% and then by an additional 2% in 2010. The General Fund has 10
years to pay back $162 million which was withdrawn in 2010, and the Education Trust Fund has 5 years to pay back $437 million
which was withdrawn in 2009. At the end of fiscal year 2010 there were no funds left that could be drawn for either Rainy Day
Accounts.
Encumbrance Accounting
Encumbrances represent commitments related to unperformed contracts for goods and services. Encumbrance accounting is used
as purchase orders are issued to ensure that purchase orders plus expenditures do not exceed allotment balances. At fiscal year end
this control becomes stricter, as purchase orders plus any other obligations or accounts payable incurred against fiscal year
appropriations may not exceed allotment balances.
Encumbrances outstanding at year end in governmental funds are reported on the GAAP basis statements as a reservation of fund
balance. Encumbrance balances are reported on the budgetary basis statements as expenditures.
Lapsing of Appropriations
All non-capital outlay appropriation balances not reserved by encumbrances or accounts payable lapse at September 30 of each
fiscal year. Furthermore, any non-capital outlay appropriation balance not reserved by encumbrances lapses at November 30
following each fiscal year. Encumbrances remain valid for a period of one year following the end of the fiscal year. Balances of
141
STATE OF ALABAMA
REQUIRED SUPPLEMENTARY INFORMATION
Notes on Budgetary Accounting and Reporting
For the Fiscal Year Ended September 30, 2010
encumbrances are reported on the Budgetary Comparison Schedule as expenditures. Capital outlay appropriations for the purchase
of land, the construction of buildings, or for the maintenance of roads and bridges of the state highway system continue until the
completion of the project.
Budgetary Basis of Accounting and Fund Structure
The State budgets and operates primarily on the budgetary basis which approximates the cash basis with certain material
exceptions. During the fiscal year, encumbrances, which represent obligations against current fiscal year appropriations, are
accrued. At year end, fund balances are reserved to accrue expenditures for those outstanding encumbrances and estimated
accounts payable. In compliance with Amendment 26 to the Constitution of Alabama of 1901, the total reservation may not
exceed the cash on hand in the State Treasury. Therefore, at year end, cash always equals or exceeds obligations (encumbrances
and estimated accounts payable). The Budgetary Comparison Schedule (Non-GAAP Basis) presents comparisons of the adopted
budget with actual data on a budgetary basis. The budget excludes funds for all entities operating outside the State Treasury,
certain distributive accounts such as those for making distributions to local governments, and most debt service accounts. Since
the accounting principles used in the State’s budgetary basis of accounting differ significantly from those used to present financial
statements in conformity with GAAP, a reconciliation of the differences is presented on the schedule. Governmental Accounting
Standards Board (GASB) Statement No. 41 requires that budgetary comparison schedules be presented as RSI based on the fund,
organization, or program structure that the government uses for its legally adopted budget for a government with significant
budgetary perspective differences that result in the government’s not being able to present budgetary comparisons for the general
fund and each major special revenue fund. The budgetary fund structure for the General Fund group and the Education Trust Fund
group is essentially the same as the GAAP fund structure. The Earmarked Fund group does not correspond to a major GAAP fund
and these perspective differences are included in the Budget-to-GAAP Reconciliation. The budgets of some major funds are spread
throughout various agencies and programs in the Earmarked Fund group. A Detail Schedule of Budget and Actual Expenditures
appears in the Governmental Funds subsection of the Combining and Individual Fund Statements and Schedules Section of the
CAFR. This schedule provides detail information at the legal level of control for each individual appropriation item contained in
the budget for all budgetary fund groups.
142
STATE OF ALABAMA
REQUIRED SUPPLEMENTARY INFORMATION
Ten Year Loss Development Information for State Insurance Fund
For the Fiscal Year Ended September 30, 2010
The following table illustrates how the State Insurance Fund's (Fund) earned revenue (net of reinsurance) and investment income
compare to related costs of loss (net of loss assumed by reinsurers) and other expenses assumed by the Fund as of the end of each
of the previous ten years. The rows of the table are defined as follows: (1) This line shows the total of each fiscal year's gross
earned premiums and reported investment revenue, amounts of premiums ceded, and reported premiums (net of reinsurance) and
reported investment revenue. (2) This line shows each fiscal year's other operating costs of the Fund including overhead and loss
adjustment expenses not allocable to individual claims. (3) This line shows the Fund's gross incurred losses and allocated loss
adjustment expense, losses assumed by reinsurers, and net incurred losses and loss adjustment expense (both paid and accrued) as
originally reported at the end of the year in which the event that triggered coverage occurred (called accident year). (4) This
section of ten rows shows the cumulative net amounts paid as of the end of successive years for each accident year. (5) This line
shows the latest reestimated amount of losses assumed by reinsurers for each accident year. (6) This section of ten rows shows
how each accident year's net incurred losses increased or decreased as of the end of successive years. (This annual reestimation
results from new information received on known losses, reevaluation of existing information on known losses, and emergence of
new losses not previously known.) (7) This line compares the latest reestimated net incurred losses amount to the amount
originally established (line 3) and shows whether this latest estimate of losses is greater or less than originally estimated. As data
for individual accident years mature, the correlation between original estimates and reestimated amounts is commonly used to
evaluate the accuracy of net incurred losses currently recognized in less mature accident years. The columns of the table show data
for successive accident years.
(Amounts in Thousands)
1. Premiums and investment revenue:
Earned
Ceded
Net Earned
2001
2002
2003
2004
2005
2006
Fiscal and Accident Year Ended
2007
2008
2009
2010
$
13,871
4,625
9,246
$
11,785
6,819
4,966
$
20,108
9,220
10,888
$
26,051
9,355
16,696
$
28,012
8,866
19,146
$
28,682
11,098
17,584
$
31,625
15,067
16,558
$
31,505
16,582
14,923
$
32,760
17,022
15,738
$
32,489
16,803
15,686
2. Unallocated Expenses
1,492
1,630
1,321
1,226
1,435
2,012
2,012
3,030
3,273
3,010
3. Estimated losses and expenses, end
of accident year:
Incurred
Ceded
Net incurred
4. Net paid (cumulative) as of:
End of Accident Year
One Year Later
Two Years Later
Three Years Later
Four Years Later
Five Years Later
Six Years Later
Seven Years Later
Eight Years Later
Nine Years Later
5. Reestimated ceded losses and
expenses
6. Reestimated net incurred losses
and expenses as of:
End of Accident Year
One Year Later
Two Years Later
Three Years Later
Four Years Later
Five Years Later
Six Years Later
Seven Years Later
Eight Years Later
Nine Years Later
7. Increase (decrease) in estimated net
incurred losses and expenses from
end of accident year
10,467
580
9,887
9,033
1,042
7,991
20,571
6,950
13,621
19,113
5,857
13,256
15,806
990
14,816
17,978
89
17,889
34,751
23,973
10,778
9,843
-
9,843
12,113
-
12,113
12,319
5,781
6,538
4,086
8,732
9,764
9,782
9,796
9,796
9,796
9,746
9,582
9,673
1,638
6,962
7,408
7,424
7,424
7,453
7,459
7,278
7,278
6,724
12,336
11,636
11,983
11,066
10,957
10,730
10,730
2,956
8,432
9,549
10,301
10,347
10,231
10,231
2,229
10,068
12,021
12,138
12,096
12,094
6,245
12,391
14,930
14,977
15,160
4,617
14,468
15,893
16,160
2,840
6,257
6,613
5,135
2,980
6,310
446
2,221
6,173
23,158
15,668
87
16,293
-
-
5,781
9,887
9,726
10,103
10,021
9,846
9,796
9,796
9,746
9,582
9,673
7,991
7,716
7,687
7,471
7,449
7,513
7,459
7,278
7,278
13,621
13,058
12,054
11,999
11,113
10,957
10,730
10,730
13,255
10,602
10,662
10,623
10,347
10,231
10,231
14,816
13,801
13,247
12,292
12,096
12,094
17,889
16,170
15,133
15,160
15,160
10,778
16,661
16,120
16,160
9,843
7,535
7,240
15,975
12,113
6,538
(214)
(713)
(2,891)
(3,025)
(2,722)
(2,729)
5,382
(2,603)
-
-
143
STATE OF ALABAMA
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Funding Progress for Employees’ Retirement System
For the Fiscal Year Ended September 30, 2010
State Employees and State Policemen
(Amounts In Thousands)
Actuarial
Valuation Date
(A)
Actuarial Value
of Assets
9/30/2004
9/30/2005
9/30/2006
9/30/2007
9/30/2008
9/30/2009
$
4,922,875
5,019,873
5,107,345
5,272,570
5,262,934
5,163,233
(B)
Actuarial Accrued
Liability (AAL)
$
5,464,579
6,067,599
6,336,009
6,852,536
7,102,856
7,297,454
(B-A)
Unfunded
AAL
$
541,704
1,047,726
1,228,664
1,579,966
1,839,922
2,134,221
(A/B)
Funded
Ratio
90.1
82.7
80.6
76.9
74.1
70.8
(C)
Covered
Payroll
1,194,599
$
1,322,763
1,335,047
1,541,509
1,582,712
1,563,862
((B-A)/C)
UAAL as a %
of Covered Payroll
45.3
79.2
92.0
102.5
116.3
136.5
The Retirement Systems of Alabama issues a stand-alone financial report that includes financial statements and required
supplementary information for the year ended September 30, 2010. Copies may be obtained by writing to:
The Retirement Systems of Alabama
P.O. Box 302150
201 South Union Street
Montgomery, AL 36130-2150
144
STATE OF ALABAMA
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Funding Progress for Retired State Employees’ Health Care Trust
For the Fiscal Year Ended September 30, 2010
Retired State Employees Health Care Trust
(Amounts In Thousands)
Actuarial
Valuation Date
9/30/2007
9/30/2008
9/30/2009
(B)
(B-A)
(A)
Actuarial Value Actuarial Accrued
of Assets
$
-
52,185
88,588
Liability (AAL) Unfunded AAL
2,984,796
$
2,951,196
4,053,488
2,984,796
3,003,381
4,142,076
$
(A/B)
Funded
Ratio
0.0%
1.7%
2.1%
(C)
Covered
Payroll
1,582,827
1,623,879
1,607,097
$
((B-A)/C)
UAAL as a %
of Covered Payroll
188.6%
181.7%
252.2%
145
STATE OF ALABAMA
REQUIRED SUPPLEMENTARY INFORMATION
Notes to Schedule of Funding Progress for Retired State Employees’ Health Care Trust
For the Fiscal Year Ended September 30, 2010
Changes in the actuarial assumptions significantly affect the identification of trends in the amounts reported in the Schedule of
Funding Progress. The table below summarizes these changes.
Actuarial Valuation
Investment
Medical Cost Trend Rate *
Ultimate
Year of Ultimate
Date
9/30/2007
9/30/2008
9/30/2009
Rate of Return *
Medicare Eligible
Pre-Medicare
5%
5%
5%
9.5%
9.0%
9.0%
11.0%
11.0%
10.5%
Trend Rate *
5%
5%
5%
Trend Rate
2016
2016
2016
*Includes inflation at 4.50%.
The medical cost trend rate for Medicare-eligible retirees was changed from 9.5 percent to 9 percent for the 9/30/2008 valuation
and for Pre-Medicare retirees was changed from 12 percent to 11 percent for the 9/30/2007 valuation. The investment rate of
return was changed from 4 percent to 5 percent and the ultimate trend rate was changed from 6 percent to 5 percent for the
9/30/2006 valuation. Also, a Medicare Advantage Plan was established for Medicare-eligible retirees. The medical cost trend rate
for pre-Medicare changed from 11% to 10.5% for the 9/30/2009 valuation. The effects of these changes are reflected in the
actuarial valuations.
The State Employees’ Insurance Board issues a stand-alone financial report that includes the Retired State Employees’ Health
Care Trust financial statements and required supplementary information for the year ended September 30, 2010. A copy may be
obtained by writing to:
State Employees’ Insurance Board
P. O. Box 304900
201 South Union Street, Suite 200
Montgomery, AL 36130-4900
146
STATE OF ALABAMA
REQUIRED SUPPLEMENTARY INFORMATION
Information About Infrastructure Assets Reported Using the Modified Approach
For the Fiscal Year Ended September 30, 2010
Modified Approach
As allowed by GASB Statement Number 34, the State has adopted the modified approach for reporting roadway and bridge
infrastructure assets. Under the modified approach, depreciation is not recorded. Infrastructure costs that result in an increase in
the capacity or an improvement in the efficiency of the infrastructure network are capitalized and added to the historical cost of the
assets. Costs that allow the infrastructure network to be used efficiently over the expected useful life of the assets are expensed as
general maintenance costs. Certain maintenance costs that extend the useful life of the assets but do not increase capacity or
efficiency are classified as preservation costs. Preservation costs are expensed and reported in lieu of a charge for depreciation
expense. Assets accounted for under the modified approach in fiscal year 2010 include approximately 10,876 miles of state
maintained highways and 5,368 of state maintained bridges and culverts.
In order to utilize the modified approach, Alabama is required to:
Maintain an asset management system that includes an inventory of eligible infrastructure assets.
Perform condition assessments of eligible assets and summarize the results using a measurement scale.
Estimate annually the amount to maintain and preserve the assets at the condition level established and disclosed by the
State.
Document that the assets are being preserved approximately at or above the established condition level.
Roads
Measurement Scale
The Alabama Department of Transportation uses the International Roughness Index (IRI) to measure and monitor pavement
conditions. The IRI is a standard representing the perceived smoothness of pavements while traveling in passenger cars. The
smoothness is measured by the cumulative height the wheel of a vehicle travels vertically over a mile long section of roadway.
For example, if the wheel of a vehicle travels vertically 1.0 inches every 0.01 miles, the IRI for that 1 mile section of roadway
would be the sum of 100 measurements (0.01 X 100 = 1 mile) of 1.0 inches each or 100 inches/mile. A lower IRI measurement
represents a smoother condition of pavement.
Data is collected by route samples and complete route assessments when available. If data is collected in route samples, the
samples are weighted by route length to give system averages. If data is collected for the complete route, the frequency of
collection is every 0.01 mile and no weighting is used in the computation of system averages.
The United States Department of Transportation developed suggested values for IRI of <60 inches/mile to >220 inches/mile to
grade the smoothness condition of the roadway. The Alabama Department of Transportation utilizes this scale of suggested values
in its roadway condition assessments. The IRI scale is as follows:
IRI Rating
> 170 Interstates
> 220 Other Routes
Significant Maintenance Required (Resurfacing or Reconstruction)
Description
Condition
Poor
120-170 Interstates
171-220 Other Routes
95-119 Interstates
95-170 Other Routes
60-94 All Routes
< 60 All Routes
Mediocre
Moderate Maintenance Required (Resurfacing or Reconstruction)
Fair
Good
Routine Maintenance Required (Pavement Patching)
Negligible Maintenance Required
Very Good
No Maintenance Required
147
STATE OF ALABAMA
REQUIRED SUPPLEMENTARY INFORMATION
Information About Infrastructure Assets Reported Using the Modified Approach
For the Fiscal Year Ended September 30, 2010
Established Condition Level
The weighted average rating of all State maintained roadways shall be “Fair” or better.
Assessed Conditions
The following table represents the most recent condition assessment for roadways classified by Non-Interstate Non-National
Highway System Routes, Non-Interstate National Highway System Routes, and Interstate Routes:
As of September 30,
2010
2009
2008
Miles
Rating
Miles
Rating
Miles
Rating
7,163
2,807
906
10,876
83.90
70.54
69.37
79.24
7,192
2,779
906
10,877
79.50
64.08
62.77
74.17
7,197
83.12
2,773
906
10,876
66.49
62.79
77.19
Category
Non-Interstate Non-National
Highway System
Non-Interstate National
Highway System
Interstate System
Summary Total and
Weighted Average Rating
Bridges
Measurement Scale
ALDOT uses a weighted rating of the major structure components and the deck area of a bridge or culvert. The GASB 34 Bridge
Rating is a zero to ten score assigned to each component-rating category and then averaged for each bridge asset classification
using an algorithm developed by the ALDOT Maintenance Bureau. The algorithm uses the assessed weighted ratings, each bridge
deck area, and the sum of all deck areas. The ten point scale is as follows:
Rating
1 - 4.99
5 - 6.99
7 or Greater
Description
Structural elements have been seriously affected by deterioration.
Structural elements are sound but have minor deterioration.
Structural elements show negligible signs of deterioration.
Condition
Marginal
Satisfactory
Good
Established Condition Level
The weighted average rating of all State maintained bridges and culverts shall be “Satisfactory” or better.
Assessed Conditions
The following table represents the most recent condition assessment for bridges and culverts classified by Non-Interstate Non-
National Highway System Routes, Non-Interstate National Highway System Routes, and Interstate Routes:
148
STATE OF ALABAMA
REQUIRED SUPPLEMENTARY INFORMATION
Information About Infrastructure Assets Reported Using the Modified Approach
For the Fiscal Year Ended September 30, 2010
Category
Non-Interstate Non-National
Highway System
Non-Interstate National
Highway System
Interstate System
Summary Total and
Weighted Average Rating
Estimated and Actual Costs
2010
As of September 30,
2009
2008
Structures
Rating
Structures
Rating
Structures
Rating
2,594
1,629
1,151
5,374
6.69
6.84
6.10
6.60
2,594
1,625
1,149
5,368
6.71
6.91
6.08
6.64
2,592
1,621
1,149
5,362
6.76
6.91
6.11
6.67
In fiscal years 2010, 2009, 2008, 2007, and 2006, the State estimated it would need to spend $306.0, $310.0, $320.0, $277.7, and
$247.1 million, respectively, to preserve and maintain all roadway assets and $10.0 million in each year to preserve all bridge
assets at or above the “Established Condition Levels” presented above. The State spent $387,793,000 for roadway preservation and
$47,020.000 for bridge preservation in fiscal year 2010. In fiscal year 2009, the State spent $316,082,000 for road preservation and
$34,457,000 for bridge preservation. In fiscal year 2008, the State spent $265,160,000 for roadway preservation and $22,434,000
for bridge preservation. In fiscal year 2007, the State spent $293,253,000 for roadway preservation and $2,188,000 for bridge
preservation. In fiscal year 2006, the State spent $259,823,000 for maintenance and preservation of roadway and bridge assets
combined. In the next fiscal year, the Alabama Department of Transportation estimates that it will need to spend approximately
$319,568,000 to preserve all roadway assets and approximately $10,000,000 to preserve all bridge assets at or above the
“Established Condition Levels” presented above. Condition levels are expected to continue to meet or exceed the “Established
Condition Levels”.
149
150
STATE OF ALABAMA
FINANCIAL SECTION
Combining and Individual Fund Statements and Schedules
151
STATE OF ALABAMA
COMBINING BALANCE SHEET
Nonmajor Governmental Funds by Fund Type
September 30, 2010
(Amounts in Thousands)
Special
Revenue
Funds
Debt
Service
Funds
Capital
Projects
Funds
$ 995,524
472,760
57,751
2,909
845
9,822
157,732
326,824
3,020
-
39,068
1,166
61,748
37
$ 2,129,206
$ 509
300
-
-
-
-
-
-
-
-
-
-
-
-
$ 809
$ 155,592
70
-
-
-
-
-
-
2
-
3
-
-
-
$ 155,667
Permanent
Funds
$ 13,111
56,694
-
-
-
161
-
-
192
61
8,171
-
-
-
$ 78,390
Totals
$ 1,164,736
529,824
57,751
2,909
845
9,983
157,732
326,824
3,214
61
47,242
1,166
61,748
37
$ 2,364,072
ASSETS
Cash and Cash Equivalents
Investments
Due from Other Funds
Due from Component Units
Investment Sales Receivable
Accounts Receivable
Due from Other Governments
Taxes Receivable
Interest and Dividends Receivable
Mortgages, Notes, and Loans Receivable
Securities Lending Collateral
Inventory
Restricted Assets
Other Assets
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
Liabilities
Warrants Payable
Investment Purchases Payable
Salaries Payable
Due to Other Funds
Due to Component Units
Accounts Payable
Due to Other Governments
Securities Lending Obligation
Deferred Revenue
Amounts Held in Custody for Others
Compensated Absences
Total Liabilities
Fund Balances
Reserved for:
Encumbrances
Inventory
Restricted Assets
Long-term Receivables
Permanent Trust Principal
Unreserved, Designated for Capital Projects
Unreserved, Designated for Debt Service
Unreserved, Undesignated
Total Fund Balances
TOTAL LIABILITIES AND FUND BALANCES
$ 39,273
681
61,256
46,464
149,556
118,212
210,259
39,068
122,324
56,725
719
844,537
$ 0
-
-
-
-
3
-
-
-
-
-
3
$ 6
-
-
-
-
2,328
12
3
-
-
-
2,349
$ 0
-
-
6
-
52
3
8,171
-
-
-
8,232
$ 39,279
681
61,256
46,470
149,556
120,595
210,274
47,242
122,324
56,725
719
855,121
43,116
1,166
61,748
208
-
-
-
1,178,431
1,284,669
-
-
-
-
-
-
806
-
806
-
-
-
-
-
153,318
-
-
153,318
-
-
-
-
45,784
-
-
24,374
70,158
43,116
1,166
61,748
208
45,784
153,318
806
1,202,805
1,508,951
$ 2,129,206
$ 809
$ 155,667
$ 78,390
$ 2,364,072
152
STATE OF ALABAMA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
Nonmajor Governmental Funds by Fund Type
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Special
Revenue
Funds
Debt
Service
Funds
Capital
Projects
Funds
Permanent
Funds
REVENUES
Taxes
Licenses, Permits, and Fees
Fines, Forfeits, and Court Settlements
Investment Income
Federal Grants and Reimbursements
Other Revenues
Total Revenues
EXPENDITURES
Current:
Economic Development and Regulation
Education and Cultural Resources
Natural Resources and Recreation
Health
Social Services
Protection of Persons and Property
Transportation
General Government
Capital Outlay
Debt Service - Principal Retirement
Debt Service - Interest and Other Charges
Total Expenditures
Excess (Deficiency) of
Revenues Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Bonds Issued
Refunding Bonds Issued
Other Debt Issued
Debt Issuance Premiums
Insurance Recovery Proceeds
Transfers Out
Payments to Refunded Bond Escrow Agent
Current Refunding to Bondholders
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, October 1, 2009, as Restated
Increase (Decrease) in Inventory
Fund Balances, September 30, 2010
$ 1,351,033
361,582
122,764
26,331
2,780,147
363,540
5,005,397
$ 0
-
-
155
-
2,138
2,293
$ 0
-
-
247
-
282
529
$ 0
1,225
-
3,671
-
1,460
6,356
Totals
$ 1,351,033
362,807
122,764
30,404
2,780,147
367,420
5,014,575
195,667
1,723,887
177,635
1,259,700
346,358
623,906
237,453
717,055
-
1,149
2,703
5,285,513
-
-
-
-
-
-
-
-
-
44,316
47,180
91,496
-
-
-
-
-
-
-
-
42,525
-
816
43,341
-
757
-
-
14
-
-
-
-
-
-
771
195,667
1,724,644
177,635
1,259,700
346,372
623,906
237,453
717,055
42,525
45,465
50,699
5,421,121
(280,116)
(89,203)
(42,812)
5,585
(406,546)
741,037
-
-
62,136
-
1,127
(336,478)
-
-
467,822
187,706
1,096,939
24
95,742
-
112,030
-
10,840
-
(2,663)
(74,415)
(52,610)
88,924
(279)
1,085
-
1,819
110,000
-
-
9,906
-
(10,560)
-
-
111,165
68,353
84,965
-
1,658
-
-
-
-
-
(696)
-
-
962
840,256
110,000
112,030
62,136
20,746
1,127
(350,397)
(74,415)
(52,610)
668,873
6,547
63,611
-
262,327
1,246,600
24
$ 1,284,669
$ 806
$ 153,318
$ 70,158
$ 1,508,951
153
154
Nonmajor Special Revenue Funds
Nonmajor Special Revenue Funds account for specific revenue sources that are legally restricted to finance particular
functions and activities of the State.
Public Health Department
Accounts for resources used for the primary operations of the Department of Public Health, which promotes the general
physical health, enforces laws relating to public health and operates programs providing preventive and treatment services to
the public.
Education Department
Accounts primarily for Federal programs administered by the State Department of Education.
Economic and Community Affairs
The Department of Economic and Community Affairs oversees federal and State programs related to energy management,
skills enhancement and employment opportunities, traffic control and accident prevention, and state and regional planning.
Revenues Allocated to Other Governments
Account for revenues from taxes and other revenue sources which are shared with local governments and component units.
Other Medicaid Funds
Accounts for activity associated with the Medicaid program that is not reported in the Major Governmental Funds under either
the General Fund or the Medicaid Fund.
Rehabilitation Services
Accounts for the operation of the Department of Rehabilitation Services which operates programs that provide services to aid
handicapped citizens.
Public School Fund
Accounts for revenues and expenditures which are allocated to local boards of education for support of educational programs.
Children First Trust
Accounts for tobacco settlement revenues that are restricted to various programs that benefit children.
Revenue Administrative
Administers the collection of most state taxes and licenses.
Industrial Relations
Administers the employment security, workers compensation, and industrial safety and accident prevention programs.
Conservation and Natural Resources
Is responsible for the management of the State's game and wildlife resources as well as operation of the State parks system.
Other Nonmajor Special Revenue Funds
Are aggregated for reporting purposes and account for various other resources which must be used for specific purposes.
155
STATE OF ALABAMA
COMBINING BALANCE SHEET
Nonmajor Special Revenue Funds
September 30, 2010
(Amounts in Thousands)
ASSETS
Cash and Cash Equivalents
Investments
Due from Other Funds
Due from Component Units
Investment Sales Receivable
Accounts Receivable
Due from Other Governments
Taxes Receivable
Interest and Dividends Receivable
Securities Lending Collateral
Inventory
Restricted Assets
Other Assets
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
Liabilities
Warrants Payable
Investment Purchases Payable
Salaries Payable
Due to Other Funds
Due to Component Units
Accounts Payable
Due to Other Governments
Securities Lending Obligation
Deferred Revenue
Amounts Held in Custody for Others
Compensated Absences
Total Liabilities
Fund Balances
Reserved for:
Encumbrances
Inventory
Restricted Assets
Long-term Receivables
Unreserved, Undesignated
Total Fund Balances
TOTAL LIABILITIES AND FUND BALANCES
Public
Health
Department
$ 66,665
-
22,662
956
-
-
15,493
250
-
2,238
-
-
-
$ 108,264
Education
Department
$ 57,799
-
4,668
4
-
12
92,677
39
-
2,472
-
-
-
$ 157,671
Economic
and
Community
Affairs
$ 26,476
-
814
-
-
371
27,659
-
-
974
268
7,230
-
$ 63,792
Revenues
Allocated
to Other
Governments
$ 73,177
-
937
-
-
2
-
172,528
-
3,154
-
-
-
$ 249,798
Other
Medicaid
Funds
$ 1,516
-
-
-
-
-
-
13,670
-
65
-
-
-
$ 15,251
$ 150
-
18,151
10,055
69
33,062
94
2,238
-
-
105
63,924
$ 16,744
-
3,827
607
20
4,563
88,763
2,472
-
-
21
117,017
$ 12,747
-
1,127
5,626
8
9,589
12,172
974
148
-
1
42,392
$ 113
-
-
1,860
147,997
34
96,626
3,154
14
-
-
249,798
$ 0
-
-
-
-
-
-
65
-
-
-
65
4,804
-
-
-
39,536
44,340
7,168
-
-
-
33,486
40,654
158
268
7,230
-
13,744
21,400
-
-
-
-
-
0
-
-
-
-
15,186
15,186
$ 108,264
$ 157,671
$ 63,792
$ 249,798
$ 15,251
156
Rehabilitation
Services
Public
School
Fund
Children
First
Trust
Revenue
Administrative
Industrial
Relations
Conservation
and
Natural
Resources
Other
Special
Revenue
Funds
$ 5,838
-
-
-
-
-
-
128,020
-
252
-
-
-
$ 134,110
$ 20,710
-
32
-
-
6
-
-
-
893
-
-
-
$ 21,641
$ 13,213
-
9
5
-
2
-
8,033
-
570
-
-
-
$ 21,832
$ 19,755
3,502
1,326
-
-
130
4
-
1
844
-
-
-
$ 25,562
$ 68,145
16
650
-
-
5,860
-
275
-
2,937
584
-
-
$ 78,467
$ 0
-
-
-
-
-
-
252
106,910
-
-
107,162
$ 7
-
73
569
305
2,416
95
893
-
-
-
4,358
$ 319
-
6,852
1,648
-
2,992
8
570
-
55
13
12,457
$ 21
-
5,009
1,696
7
916
26
844
-
-
75
8,594
$ 206
-
4,756
1,107
1
5,638
336
2,937
6
202
5
15,194
$ 615,383
469,242
24,906
1,944
845
3,275
21,899
4,009
3,019
23,522
149
54,518
37
$ 1,222,748
$ 8,824
681
18,292
21,720
918
49,776
11,871
23,522
15,246
56,468
480
207,798
Totals
$ 995,524
472,760
57,751
2,909
845
9,822
157,732
326,824
3,020
39,068
1,166
61,748
37
$ 2,129,206
$ 39,273
681
61,256
46,464
149,556
118,212
210,259
39,068
122,324
56,725
719
844,537
$ 26,847
-
1,747
-
-
164
-
-
-
1,147
165
-
-
$ 30,070
$ 142
-
3,169
1,576
231
9,226
268
1,147
-
-
19
15,778
$ 30,070
908
165
-
-
13,219
14,292
-
-
-
-
26,948
26,948
1
-
-
-
17,282
17,283
3,424
-
-
-
5,951
9,375
471
-
-
-
16,497
16,968
4,889
584
-
-
57,800
63,273
21,293
149
54,518
208
938,782
1,014,950
43,116
1,166
61,748
208
1,178,431
1,284,669
$ 134,110
$ 21,641
$ 21,832
$ 25,562
$ 78,467
$ 1,222,748
$ 2,129,206
157
STATE OF ALABAMA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
Nonmajor Special Revenue Funds
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Revenues
Allocated
to Other
Governments
$ 706,714
30,758
96,446
-
2,346
-
836,264
Other
Medicaid
Funds
$ 282,950
-
-
-
-
36,926
319,876
REVENUES
Taxes
Licenses, Permits, and Fees
Fines, Forfeits, and Court Settlements
Investment Income
Federal Grants and Reimbursements
Other Revenues
Total Revenues
EXPENDITURES
Current:
Economic Development and Regulation
Education and Cultural Resources
Natural Resources and Recreation
Health
Social Services
Protection of Persons and Property
Transportation
General Government
Debt Service - Principal Retirement
Debt Service - Interest and Other Charges
Total Expenditures
Excess (Deficiency) of
Revenues Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Other Debt Issued
Insurance Recovery Proceeds
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, October 1, 2009, as Restated
Increase (Decrease) in Inventory
Fund Balances, September 30, 2010
Economic
Public
Health
Department
$ 3,012
30,753
-
-
429,472
47,357
510,594
Education
Department
$ 3,496
941
4
2
1,281,091
10,168
1,295,702
and
Community
Affairs
$ 0
-
1,981
11
342,278
2,933
347,203
-
-
-
678,031
-
-
-
-
536
657
679,224
-
1,240,872
-
-
47,112
-
-
-
-
-
1,287,984
-
-
-
-
23,839
30,486
-
262,555
-
-
316,880
120,621
120,393
1,835
192,188
-
766
211,331
225,338
-
-
872,472
-
-
-
270,408
-
-
-
-
-
-
270,408
(168,630)
7,718
30,323
(36,208)
49,468
206,220
-
-
(38,515)
167,705
(925)
45,265
-
2,356
-
-
(2,152)
204
7,922
32,732
-
10,202
-
-
(39,920)
(29,718)
605
20,812
(17)
36,208
-
-
-
36,208
0
-
-
1
-
-
(38,051)
(38,050)
11,418
3,768
-
$ 44,340
$ 40,654
$ 21,400
$ 0
$ 15,186
158
Rehabilitation
Services
Public
School
Fund
Children
First
Trust
Revenue
Administrative
Industrial
Relations
Conservation
and
Natural
Resources
Other
Special
Revenue
Funds
$ 168,363
-
-
-
-
4,952
173,315
$ 0
-
-
-
12
48,958
48,970
$ 118,037
3,658
-
-
924
5,750
128,369
$ 5,173
251
46
98
69,858
2,852
78,278
$ 9,889
26,908
1,111
760
18,101
46,984
103,753
$ 53,399
268,313
21,776
25,460
567,570
155,297
1,091,815
-
195,104
-
-
-
-
-
-
-
533
195,637
-
-
-
5,405
18,198
9,506
-
3,780
-
-
36,889
-
-
-
-
-
-
-
119,511
4
1
119,516
-
-
-
-
68,266
10,916
-
-
-
-
79,182
-
-
108,450
-
-
-
-
-
-
-
108,450
75,046
159,580
67,350
113,668
99,645
572,232
26,122
105,871
609
1,499
1,221,622
Totals
$ 1,351,033
361,582
122,764
26,331
2,780,147
363,540
5,005,397
195,667
1,723,887
177,635
1,259,700
346,358
623,906
237,453
717,055
1,149
2,703
5,285,513
-
7,938
-
-
89,298
-
-
-
-
13
97,249
$ 0
-
1,400
-
68,495
1,363
71,258
$ 14,292
(25,991)
27,874
-
10
(859)
27,025
1,034
13,221
37
(22,322)
12,081
8,853
(904)
(4,697)
(129,807)
(280,116)
538
-
-
-
538
(21,784)
48,732
-
-
-
-
(12,107)
(12,107)
(26)
17,309
-
7,029
-
-
(12,747)
(5,718)
3,135
6,240
-
11,149
-
-
(5,997)
5,152
4,248
12,720
-
16,593
-
304
(14,343)
2,554
(2,143)
65,394
22
422,867
62,136
813
(171,787)
314,029
184,222
830,746
(18)
741,037
62,136
1,127
(336,478)
467,822
187,706
1,096,939
24
$ 26,948
$ 17,283
$ 9,375
$ 16,968
$ 63,273
$ 1,014,950
$ 1,284,669
159
STATE OF ALABAMA
COMBINING BALANCE SHEET
Other Nonmajor Special Revenue Funds
September 30, 2010
(Amounts in Thousands)
ASSETS
Cash and Cash Equivalents
Investments
Due from Other Funds
Due from Component Units
Investment Sales Receivable
Accounts Receivable
Due from Other Governments
Taxes Receivable
Interest and Dividends Receivable
Securities Lending Collateral
Inventory
Restricted Assets
Other Assets
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
Warrants Payable
Investment Purchases Payable
Salaries Payable
Due to Other Funds
Due to Component Units
Accounts Payable
Due to Other Governments
Securities Lending Obligation
Deferred Revenue
Amounts Held in Custody for Others
Compensated Absences
Total Liabilities
Fund Balances
Reserved for:
Encumbrances
Inventory
Restricted Assets
Long-term Receivables
Unreserved, Undesignated
Total Fund Balances
TOTAL LIABILITIES AND FUND BALANCES
Professional
and
Environmental Occupational
Management
Boards
Emergency
Management
$ 58,411
8,532
1,715
1,814
-
-
208
-
-
1,624
-
-
-
$ 72,304
$ 696
-
3,654
9,988
859
11,197
890
1,624
-
26
108
29,042
$ 43,952
7,634
74
1
-
227
-
-
-
1,310
-
-
-
$ 53,198
$ 41
-
1,337
391
2
2,245
1
1,310
13,664
871
15
19,877
$ 7,366
-
205
-
-
1
15,470
-
-
318
-
-
-
$ 23,360
$ 1,014
-
328
158
-
251
28
318
-
-
3
2,100
Educational
Television
Foundation
Authority
$ 727
3,542
-
-
-
1,454
-
-
-
-
-
630
37
$ 6,390
$ 0
-
-
-
-
1,025
-
-
63
-
-
1,088
Corrections
$ 61,921
200
3,031
-
-
599
119
-
-
2,567
-
53,625
-
$ 122,062
$ 0
-
143
886
-
5,138
47
2,567
-
-
-
8,781
420
-
53,625
-
59,236
113,281
6,411
-
-
208
36,643
43,262
806
-
-
-
32,515
33,321
263
-
-
-
20,997
21,260
-
-
630
-
4,672
5,302
$ 122,062
$ 72,304
$ 53,198
$ 23,360
$ 6,390
160
Public
Health
Care
Authority
$ 6,705
150
-
-
-
-
137
-
1
-
-
-
-
$ 6,993
$ 0
-
-
-
-
143
-
-
-
-
-
143
$ 6,993
-
-
-
-
6,850
6,850
Forever
Wild
Trust
$ 10,544
-
-
-
-
-
23
-
-
455
-
-
-
$ 11,022
$ 3,516
-
-
528
-
3
21
455
-
-
-
4,523
-
-
-
-
6,499
6,499
State
Parks
Alabama
Capital
Improvement
Corporation
Improvement
Trust
County and
Municipal
Capital
Improvement
$ 0
-
-
-
-
-
-
-
-
-
-
-
-
$ 0
$ 0
-
-
-
-
-
-
-
-
-
-
0
$ 4,935
3,114
-
-
-
-
-
-
10
213
-
-
-
$ 8,272
$ 294
-
-
562
-
-
-
213
4
-
-
1,073
$ 9,461
389,362
-
-
845
-
-
-
3,008
407
-
-
-
$ 403,083
$ 0
675
-
-
-
-
-
407
1,058
-
-
2,140
University
Stabilization
$ 0
-
-
-
-
-
-
-
-
-
-
-
-
$ 0
$ 0
-
-
-
-
-
-
-
-
-
-
0
Miscellaneous
Special
Revenue
Funds
$ 411,361
56,708
19,881
129
-
994
5,942
4,009
-
16,628
149
263
-
$ 516,064
$ 3,263
6
12,830
9,207
57
29,774
10,884
16,628
457
55,571
354
139,031
Totals
$ 615,383
469,242
24,906
1,944
845
3,275
21,899
4,009
3,019
23,522
149
54,518
37
$ 1,222,748
$ 8,824
681
18,292
21,720
918
49,776
11,871
23,522
15,246
56,468
480
207,798
-
-
-
-
-
0
-
-
-
-
7,199
7,199
-
-
-
-
400,943
400,943
-
-
-
-
-
0
13,393
149
263
-
363,228
377,033
21,293
149
54,518
208
938,782
1,014,950
$ 11,022
$ 0
$ 8,272
$ 403,083
$ 0
$ 516,064
$ 1,222,748
161
STATE OF ALABAMA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
Other Nonmajor Special Revenue Funds
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Professional
and
Environmental Occupational
Management
Boards
Emergency
Management
Educational
Television
Foundation
Authority
REVENUES
Taxes
Licenses, Permits, and Fees
Fines, Forfeits, and Court Settlements
Investment Income
Federal Grants and Reimbursements
Other Revenues
Total Revenues
EXPENDITURES
Current:
Economic Development and Regulation
Education and Cultural Resources
Natural Resources and Recreation
Health
Social Services
Protection of Persons and Property
Transportation
General Government
Debt Service - Principal Retirement
Debt Service - Interest and Other Charges
Total Expenditures
Excess (Deficiency) of
Revenues Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Other Debt Issued
Insurance Recovery Proceeds
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, October 1, 2009, as Restated
Increase (Decrease) in Inventory
Fund Balances, September 30, 2010
Corrections
$ 0
5,196
2,007
8
158,691
20,945
186,847
$ 8,475
65,774
1,567
22
28,296
22,430
126,564
$ 0
33,310
8,165
604
303
1,463
43,845
$ 0
-
-
-
53,873
38,092
91,965
$ 0
-
-
186
-
9,759
9,945
-
-
-
-
-
168,167
-
-
-
314
168,481
-
-
-
105,531
-
-
-
-
409
1,119
107,059
1,716
-
-
-
-
48,004
-
30
-
-
49,750
-
-
-
-
-
86,012
-
-
-
-
86,012
-
9,723
-
-
-
-
-
-
-
-
9,723
18,366
19,505
(5,905)
5,953
222
21,245
62,025
304
-
83,574
101,940
11,341
-
10,370
-
-
(4,321)
6,049
25,554
17,708
-
1,021
-
-
(4,021)
(3,000)
(8,905)
42,226
-
7,493
-
-
(1,275)
6,218
12,171
9,089
-
-
-
-
(443)
(443)
(221)
5,523
-
$ 113,281
$ 43,262
$ 33,321
$ 21,260
$ 5,302
162
Public
Health
Care
Authority
Forever
Wild
Trust
State
Parks
Alabama
Capital
Improvement
Corporation
Improvement
Trust
County and
Municipal
Capital
Improvement
$ 0
245
-
15
2,314
-
2,574
$ 0
-
-
4
-
-
4
$ 0
-
-
(182)
-
430
248
$ 0
-
-
24,352
-
-
24,352
-
-
-
4,918
-
-
-
-
-
-
4,918
$ 0
-
-
17
-
-
17
$ 6,850
(4,901)
3,478
-
76
(456)
3,098
(1,803)
8,653
-
Miscellaneous
Special
Revenue
Funds
$ 44,924
163,788
10,037
434
232,148
62,178
513,509
Totals
$ 53,399
268,313
21,776
25,460
567,570
155,297
1,091,815
University
Stabilization
$ 0
-
-
-
91,945
-
91,945
-
-
38,538
-
-
-
-
-
-
-
38,538
-
-
2,531
-
-
-
-
-
-
-
2,531
1,460
-
-
1,998
-
-
-
14
-
-
3,472
-
-
-
-
-
-
-
208
-
-
208
(35,964)
(2,527)
(3,224)
24,144
10,139
-
-
(6,531)
3,608
(32,356)
38,855
-
-
-
-
(1,143)
(1,143)
(3,670)
3,670
-
49,313
-
-
(58,660)
(9,347)
(12,571)
19,770
-
52,720
-
-
(10,276)
42,444
66,588
334,355
-
-
91,945
-
-
-
-
-
-
-
-
91,945
0
-
-
-
-
0
0
-
-
71,870
57,912
26,281
1,221
99,645
270,049
26,122
105,619
200
66
658,985
75,046
159,580
67,350
113,668
99,645
572,232
26,122
105,871
609
1,499
1,221,622
(145,476)
(129,807)
267,088
111
433
(84,661)
182,971
37,495
339,556
(18)
422,867
62,136
813
(171,787)
314,029
184,222
830,746
(18)
$ 6,499
$ 0
$ 7,199
$ 400,943
$ 0
$ 377,033
$ 1,014,950
163
164
Nonmajor Debt Service Funds
Nonmajor Debt Service Funds account for the accumulation of resources which are used for the payment of general
governmental debt principal and interest.
Corrections Institution Finance Authority
Accounts for the accumulation of resources used to pay the interest and principal on debt issued by the Corrections Institution
Finance Authority for the purpose of financing prison construction.
Public Health Care Authority
Accounts for the accumulation of resources used to pay the interest and principal on debt issued by the Authority for the
purpose of financing the construction of public health facilities.
Judicial Building Authority
Accounts for the accumulation of resources used to pay the interest and principal on debt issued by the Authority for the
purpose of financing the construction of facilities used by the unified judicial system.
General Obligation Bonds
Accounts for the accumulation of resources used to pay general obligation interest and principal on debt issued by the State for
the purpose of financing a wide variety of construction projects.
Federal Aid Highway Finance Authority
Accounts for the accumulation of resources used to pay the interest and principal on debt issued by the Authority for the
purpose of financing road and bridge construction.
165
STATE OF ALABAMA
COMBINING BALANCE SHEET
Nonmajor Debt Service Funds
September 30, 2010
(Amounts in Thousands)
ASSETS
Cash and Cash Equivalents
Investments
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
Liabilities
Accounts Payable
Total Liabilities
Fund Balances
Unreserved, Designated for Debt Service
Total Fund Balances
TOTAL LIABILITIES AND FUND BALANCES
Corrections
Institution
Finance
Authority
Public
Health
Care
Authority
Judicial
Building
Authority
General
Obligation
Bonds
$ 461
-
$ 461
$ 0
300
$ 300
$ 0
-
$ 0
$ 48
-
$ 48
$ 0
0
$ 0
0
$ 0
0
$ 3
3
461
461
300
300
-
0
45
45
$ 461
$ 300
$ 0
$ 48
166
Federal Aid
Highway
Finance
Authority
$ 0
-
$ 0
$ 0
0
$ 0
-
0
Totals
$ 509
300
$ 809
$ 3
3
806
806
$ 809
167
STATE OF ALABAMA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
Nonmajor Debt Service Funds
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Public
Health
Care
Authority
Corrections
Institution
Finance
Authority
Judicial
Building
Authority
General
Obligation
Bonds
REVENUES
Investment Income
Other Revenues
Total Revenues
EXPENDITURES
Debt Service - Principal Retirement
Debt Service - Interest and Other Charges
Total Expenditures
Excess (Deficiency) of
Revenues Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Refunding Bonds Issued
Debt Issuance Premiums
Transfers Out
Payments to Refunded Bond Escrow Agent
Current Refunding to Bondholders
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, October 1, 2009, as Restated
Fund Balances, September 30, 2010
$ 0
2,138
2,138
$ 155
-
155
$ 0
-
0
$ 0
-
0
1,685
453
2,138
2,456
3,891
6,347
2,680
1,293
3,973
24,485
35,653
60,138
0
-
-
-
-
-
-
0
0
461
(6,192)
(3,973)
(60,138)
8,531
-
-
(2,663)
-
-
5,868
(324)
624
3,973
-
-
-
-
-
3,973
0
-
64,338
112,030
10,840
-
(74,415)
(52,610)
60,183
45
-
$ 461
$ 300
$ 0
$ 45
168
Federal Aid
Highway
Finance
Authority
13,010
5,890
18,900
(18,900)
$ 0
-
0
$ 0
18,900
-
-
-
-
-
18,900
0
-
Totals
$ 155
2,138
2,293
44,316
47,180
91,496
(89,203)
95,742
112,030
10,840
(2,663)
(74,415)
(52,610)
88,924
(279)
1,085
$ 806
169
170
Nonmajor Capital Projects Funds
Nonmajor Capital Projects Funds account for the acquisition, construction, and improvement of major general governmental
capital assets.
General Obligation Bond Projects
Accounts for the proceeds of general obligation debt issued by the State for a wide variety of construction projects involving
waterways, parks, roads, prisons, mental hospitals, research labs, and other buildings.
State Parks Improvement Corporation
Accounts for the proceeds of debt issued by the State for the purpose of financing renovations to the State Parks System.
Public Health Care Authority Capital
Accounts for the proceeds of debt issued by the Authority for the purpose of financing the construction of public health
facilities.
Judicial Building Authority Capital Projects
Accounts for proceeds of debt issued by the authority for the purpose of acquiring, constructing, and equipping judicial
facilities.
Other Capital Project Funds
Accounts for the proceeds of all other debt issued by the State to fund capital projects.
171
STATE OF ALABAMA
COMBINING BALANCE SHEET
Nonmajor Capital Projects Funds
September 30, 2010
(Amounts in Thousands)
ASSETS
Cash and Cash Equivalents
Investments
Interest and Dividends Receivable
Securities Lending Collateral
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
Liabilities
Warrants Payable
Accounts Payable
Due to Other Governments
Securities Lending Obligation
Total Liabilities
Fund Balances
Reserved for:
Unreserved, Designated for Capital Projects
Total Fund Balances
TOTAL LIABILITIES AND FUND BALANCES
General
Obligation
Bond
Projects
State
Parks
Improvement
Corporation
Public
Health
Care
Authority
Judicial
Building
Authority
$ 133,046
-
-
-
$ 133,046
$ 0
-
-
-
$ 0
$ 15,842
70
2
-
$ 15,914
$ 6,643
-
-
-
$ 6,643
$ 0
837
12
-
849
$ 0
-
-
-
0
$ 0
1,491
-
-
1,491
$ 6
-
-
-
6
132,197
132,197
-
0
14,423
14,423
6,637
6,637
$ 133,046
$ 0
$ 15,914
$ 6,643
172
Other
Capital
Project
Funds
$ 61
-
-
3
$ 64
$ 0
-
-
3
3
$ 64
61
61
Totals
$ 155,592
70
2
3
$ 155,667
$ 6
2,328
12
3
2,349
153,318
153,318
$ 155,667
173
STATE OF ALABAMA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
Nonmajor Capital Projects Funds
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Public
Health
Care
Authority
Judicial
Building
Authority
General
Obligation
State
Parks
Bond
Projects
Improvement
Corporation
REVENUES
Investment Income
Other Revenues
Total Revenues
EXPENDITURES
Capital Outlay
Debt Service - Interest and Other Charges
Total Expenditures
Excess (Deficiency) of
Revenues Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Bonds Issued
Debt Issuance Premiums
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, October 1, 2009, as Restated
Fund Balances, September 30, 2010
$ 212
282
494
$ 18
-
18
$ 0
-
0
$ 17
-
17
33,821
816
34,637
2,018
-
2,018
3,471
-
3,471
3,185
-
3,185
(34,143)
(2,000)
(3,471)
(3,168)
-
110,000
9,906
(8)
119,898
85,755
46,442
-
-
-
(10,552)
(10,552)
(12,552)
12,552
1,819
-
-
-
1,819
(1,652)
16,075
-
-
-
-
0
(3,168)
9,805
$ 132,197
$ 0
$ 14,423
$ 6,637
174
Other
Capital
Project
Funds
30
-
30
(30)
$ 0
-
0
$ 61
-
-
-
-
0
(30)
91
Totals
$ 247
282
529
42,525
816
43,341
(42,812)
1,819
110,000
9,906
(10,560)
111,165
68,353
84,965
$ 153,318
175
176
Nonmajor Permanent Funds
Nonmajor Permanent Funds report resources that are legally restricted so that only earnings, not principal, may be used for
purposes that support the State's governmental programs.
Marine, Game and Fish Endowment
Invests the proceeds of lifetime hunting and fishing licenses and uses the investment income to preserve, protect, propagate,
and develop wildlife within the State.
Alabama Research Institute
Is a trust fund which awards research grants to State universities to promote science and technology.
Senior Services Trust
Invests a portion of the proceeds from the tobacco settlement in order to accumulate money to expand programs benefiting
elderly citizens.
Other Permanent Funds
Accounts for several small permanent funds which further educational, health, and social programs.
177
STATE OF ALABAMA
COMBINING BALANCE SHEET
Nonmajor Permanent Funds
September 30, 2010
(Amounts in Thousands)
ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Interest and Dividends Receivable
Mortgages, Notes, and Loans Receivable
Securities Lending Collateral
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
Liabilities
Due to Other Funds
Accounts Payable
Due to Other Governments
Securities Lending Obligation
Total Liabilities
Fund Balances
Reserved for:
Permanent Trust Principal
Unreserved, Undesignated
Total Fund Balances
TOTAL LIABILITIES AND FUND BALANCES
Marine,
Game, and
Fish
Endowment
Alabama
Research
Institute
Senior
Services
Trust
Other
Permanent
Funds
$ 82
18,680
161
-
-
3,756
$ 22,679
$ 44
15,790
-
4
-
2
$ 15,840
$ 0
22,125
-
188
-
4,381
$ 26,694
$ 12,985
99
-
-
61
32
$ 13,177
Totals
$ 13,111
56,694
161
192
61
8,171
$ 78,390
$ 0
30
-
3,756
3,786
$ 6
21
3
2
32
$ 0
1
-
4,381
4,382
$ 0
-
-
32
32
$ 6
52
3
8,171
8,232
18,893
-
18,893
11,500
4,308
15,808
2,340
19,972
22,312
13,051
94
13,145
45,784
24,374
70,158
$ 22,679
$ 15,840
$ 26,694
$ 13,177
$ 78,390
178
STATE OF ALABAMA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
Nonmajor Permanent Funds
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Marine,
Game, and
Fish
Endowment
Alabama
Research
Institute
Senior
Services
Trust
Other
Permanent
Funds
Totals
REVENUES
Licenses, Permits, and Fees
Investment Income
Other Revenues
Total Revenues
EXPENDITURES
Current:
Education and Cultural Resources
Social Services
Total Expenditures
Excess (Deficiency) of
Revenues Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, October 1, 2009, as Restated
Fund Balances, September 30, 2010
$ 816
835
-
1,651
$ 0
1,036
-
1,036
$ 0
1,787
1,456
3,243
$ 409
13
4
426
$ 1,225
3,671
1,460
6,356
-
-
0
1,651
-
-
0
757
-
757
279
-
(5)
(5)
1,651
17,242
274
15,534
-
14
14
3,229
971
(691)
280
3,509
18,803
-
-
0
426
687
-
687
1,113
12,032
757
14
771
5,585
1,658
(696)
962
6,547
63,611
$ 18,893
$ 15,808
$ 22,312
$ 13,145
$ 70,158
179
180
Governmental Funds Supplementary Information
Governmental Funds Supplementary Information includes non-GAAP basis schedules demonstrating compliance with the
legally adopted budget and summaries of governmental fund revenues in the State Treasury.
181
STATE OF ALABAMA
DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES
All Agencies and Appropriations, Non-GAAP, Budget Basis
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
EXPENDITURES:
Administrative Office of Courts
Administrative Services
Alabama Sentencing Commission
Court Operations
Drug Court
Juvenile Probation Officer Services
TOTAL Administrative Office of Courts
Agriculture and Industries
Administrative Services
Agricultural Development Services
Agricultural Inspection Services
Lab Analysis and Disease Control
TOTAL Agriculture and Industries
Attorney General
Fair Marketing Practices: Consumer Protection
Legal Advice and Legal Service: Attorney General - Operations
Legal Advice and Legal Service: Consumer Utility Fund
TOTAL Attorney General
Auditor
Fiscal Management
TOTAL Auditor
Commission on Higher Education
Alabama Teacher Recruitment Incentive
Planning and Coordination Services
Student Financial Aid
Support - Other Educational Activities
Support of State Universities
TOTAL Commission on Higher Education
Corrections
Administration Service and Logistical Support
Correctional Industries
Institutional Service Corrections
TOTAL Corrections
Economic and Community Affairs
Administrative Support Service
Energy Management
Law Enforcement Planning and Development
Planning
Skills Enhancement/Employment Opportunities
Surplus Property
Water Resources
TOTAL Economic and Community Affairs
182
General Fund
Variance
Actual
Budget
5,261
518
137,582
3,165
16,513
163,039
5,166
510
137,286
3,095
16,278
162,335
95
8
296
70
235
704
3,260
1,357
6,852
3,696
15,165
3,135
1,303
6,613
3,563
14,614
125
54
239
133
551
574
10,849
239
11,662
560
9,605
233
10,398
14
1,244
6
1,264
775
775
704
704
71
71
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13,622
-
255,554
269,176
13,349
-
250,986
264,335
273
-
4,568
4,841
292
590
649
9,856
868
450
3,496
16,201
203
88
539
6,883
662
73
3,097
11,545
89
502
110
2,973
206
377
399
4,656
Education Trust Fund
Variance
Actual
Budget
Earmarked Funds
Variance
Actual
Budget
Total
Variance
Actual
Budget
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
22,851
-
5,377
28,228
-
-
18,603
-
3,830
22,433
-
-
4,248
-
1,547
5,795
5,261
518
160,433
3,165
21,890
191,267
5,166
510
155,889
3,095
20,108
184,768
95
8
4,544
70
1,782
6,499
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,599
1,898
12,780
5,747
24,024
3,038
1,063
9,564
4,903
18,568
561
835
3,216
844
5,456
6,859
3,255
19,632
9,443
39,189
6,173
2,366
16,177
8,466
33,182
686
889
3,455
977
6,007
-
-
-
-
-
-
-
-
-
-
-
-
-
9,027
-
9,027
-
8,444
-
8,444
-
583
-
583
574
19,876
239
20,689
560
18,049
233
18,842
14
1,827
6
1,847
-
-
-
-
-
-
100
100
100
100
-
-
875
875
804
804
71
71
1,381
2,985
6,273
2,695
5,444
18,778
296
2,467
5,934
2,557
5,444
16,698
1,085
518
339
138
-
2,080
-
-
3,015
1,635
75
4,725
-
-
2,627
1,287
-
3,914
-
-
388
348
75
811
1,381
2,985
9,288
4,330
5,519
23,503
296
2,467
8,561
3,844
5,444
20,612
1,085
518
727
486
75
2,891
-
-
-
-
-
-
-
-
-
-
-
-
6,194
25,770
153,877
185,841
6,193
16,110
149,763
172,066
1
9,660
4,114
13,775
19,816
25,770
409,431
455,017
19,542
16,110
400,749
436,401
274
9,660
8,682
18,616
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,484
66,065
66,564
288,000
56,724
2,200
9,196
499,233
9,856
18,385
36,655
223,616
49,384
1,880
5,672
345,448
628
47,680
29,909
64,384
7,340
320
3,524
153,785
10,776
66,655
67,213
297,856
57,592
2,650
12,692
515,434
10,059
18,473
37,194
230,499
50,046
1,953
8,769
356,993
717
48,182
30,019
67,357
7,546
697
3,923
158,441
183
Continued on next page...
STATE OF ALABAMA
DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES
All Agencies and Appropriations, Non-GAAP, Budget Basis
(Continued from previous page)
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Education
Administrative Services
Alabama Science in Motion
At-Risk Student Program
Board of Adjustment
Disability Determination for Social Security
Endowment Interest Program-PSF
Financial Assistance
Foundation Program
Information Technology Services
School Nurses Program
Transportation Program
TOTAL Education
Emergency Management Agency
Readiness and Recovery
TOTAL Emergency Management Agency
Examiners of Public Accounts
Legislative Support - Audit Service
TOTAL Examiners of Public Accounts
Finance
Administrative Support Service
Administrative Support Service: Director's Office
Executive Planning: Executive Planning
Fiscal Management
Fiscal Management: Budget Office
Fiscal Management: Comptroller's Office
Fiscal Management: Purchasing
General Services
General Services: Alabama Building Renovation Finance Authority
General Services: Capital Complex Maintenance and Repair
General Services: Capitol
General Services: Space Management
Information Services
Legal Management
Legal Management: Legal Division
Risk Management
SMART Business Systems
TOTAL Finance
Governor
Criminal Investigation: Law Enforcement Fund
Executive Direction: Governor's Contingency Fund
Executive Direction: Governor's Mansion
Executive Direction: Governor's Office
Executive Direction: Governor's Proclamation Expense
Executive Direction: National Governors' Conference
TOTAL Governor
184
General Fund
Variance
Actual
Budget
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,715
7,715
5,631
5,631
2,084
2,084
12,009
12,009
11,888
11,888
121
121
-
903
427
-
1,368
5,140
1,993
-
-
-
1,105
1,370
-
-
127
-
-
12,433
-
379
234
-
956
4,781
1,635
-
-
-
887
-
-
-
115
-
-
8,987
70
316
348
3,706
607
196
5,243
6
316
348
3,202
77
191
4,140
-
524
193
-
412
359
358
-
-
-
218
1,370
-
-
12
-
-
3,446
64
-
-
504
530
5
1,103
Education Trust Fund
Variance
Actual
Budget
Earmarked Funds
Variance
Actual
Budget
Total
Variance
Actual
Budget
161,768
-
22,191
642
-
-
37,497
2,982,088
3,624
30,573
271,482
3,509,865
155,475
-
22,191
642
-
-
36,377
2,982,088
3,624
30,573
271,482
3,502,452
6,293
-
-
-
-
-
1,120
-
-
-
-
7,413
91,942
2,720
-
-
85,737
533
1,454,220
374,434
-
-
-
2,009,586
35,297
2,097
-
-
47,443
533
1,006,567
369,374
-
-
-
1,461,311
56,645
623
-
-
38,294
-
447,653
5,060
-
-
-
548,275
253,710
2,720
22,191
642
85,737
533
1,491,717
3,356,522
3,624
30,573
271,482
5,519,451
190,772
2,097
22,191
642
47,443
533
1,042,944
3,351,462
3,624
30,573
271,482
4,963,763
62,938
623
-
-
38,294
-
448,773
5,060
-
-
-
555,688
-
-
-
-
-
-
166,455
166,455
87,376
87,376
79,079
79,079
174,170
174,170
93,007
93,007
81,163
81,163
6,742
6,742
6,741
6,741
1
1
5,754
5,754
1,837
1,837
3,917
3,917
24,505
24,505
20,466
20,466
4,039
4,039
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,747
401
99
3,600
-
-
-
13,613
9,120
13,456
-
-
76,886
1,581
-
8,124
9,293
139,920
2,609
401
99
86
-
-
-
11,171
7,299
9,049
-
-
45,313
1,125
-
5,356
983
83,491
1,138
-
-
3,514
-
-
-
2,442
1,821
4,407
-
-
31,573
456
-
2,768
8,310
56,429
-
26
-
-
-
-
26
-
26
-
-
-
-
26
-
-
-
-
-
-
-
185
3,747
1,304
526
3,600
1,368
5,140
1,993
13,613
9,120
13,456
1,105
1,370
76,886
1,581
127
8,124
9,293
152,353
70
342
348
3,706
607
196
5,269
2,609
780
333
86
956
4,781
1,635
11,171
7,299
9,049
887
-
45,313
1,125
115
5,356
983
92,478
1,138
524
193
3,514
412
359
358
2,442
1,821
4,407
218
1,370
31,573
456
12
2,768
8,310
59,875
6
342
348
3,202
77
191
4,166
64
-
-
504
530
5
1,103
Continued on next page...
STATE OF ALABAMA
DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES
All Agencies and Appropriations, Non-GAAP, Budget Basis
(Continued from previous page)
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Human Resources
Human Services
TOTAL Human Resources
Industrial Relations
Administrative Services
Employment Security
Industrial Safety and Accident Prevention
Regulation Workers Compensation
Small Business Program
TOTAL Industrial Relations
Legislature
Commission to Reduce Poverty
Legislative Operations and Support
TOTAL Legislature
Medicaid Agency
Medical Assistance Through Medicaid: Administrative Cost
Medical Assistance Through Medicaid: Alternative Care
Medical Assistance Through Medicaid: Family Planning
Medical Assistance Through Medicaid: Health Support
Medical Assistance Through Medicaid: Hospital Care
Medical Assistance Through Medicaid: Mental Health- Facilities
Medical Assistance Through Medicaid: Mental Health- Other Health Insurance
Medical Assistance Through Medicaid: Mental Health- Waivers
Medical Assistance Through Medicaid: Nursing Home Care
Medical Assistance Through Medicaid: Pharmaceutical
Medical Assistance Through Medicaid: Physician Care
Medical Assistance Through Medicaid: Premiums
TOTAL Medicaid Agency
Mental Health
Administrative Services
Institutional Treatment and Care of Intellectually Disabled
Institutional Treatment and Care of Mentally Ill
Special Services
Substance Abuse Program
TOTAL Mental Health
186
General Fund
Variance
Actual
Budget
-
-
-
-
-
-
-
-
2,142
-
155
2,297
-
-
2,041
-
31
2,072
-
-
101
-
124
225
5
29,324
29,329
-
22,858
22,858
5
6,466
6,471
37,193
27,982
1,504
21,837
90,235
-
-
-
10,481
86,516
50,385
23,714
349,847
18,524
25,982
213
19,111
88,778
-
-
-
9,231
84,516
47,185
21,714
315,254
18,669
2,000
1,291
2,726
1,457
-
-
-
1,250
2,000
3,200
2,000
34,593
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Education Trust Fund
Variance
Actual
Budget
Earmarked Funds
Variance
Actual
Budget
Total
Variance
Actual
Budget
-
-
-
-
-
-
2,212,247
2,212,247
1,961,426
1,961,426
250,821
250,821
2,212,247
2,212,247
1,961,426
1,961,426
250,821
250,821
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
17,417
80,427
7,814
5,864
-
111,522
12,603
63,820
4,162
4,548
-
85,133
4,814
16,607
3,652
1,316
-
26,389
17,417
80,427
9,956
5,864
155
113,819
12,603
63,820
6,203
4,548
31
87,205
4,814
16,607
3,753
1,316
124
26,614
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5
29,324
29,329
-
22,858
22,858
5
6,466
6,471
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
178,617
405,202
56,798
229,368
2,164,046
59,500
124,449
347,610
924,728
523,979
374,818
247,930
5,637,045
142,633
357,762
53,538
221,948
1,840,233
34,859
123,205
275,738
862,575
451,290
346,314
244,757
4,954,852
23,118
438,084
399,169
18,870
48,948
928,189
20,629
418,875
362,564
15,969
41,003
859,040
35,984
47,440
3,260
7,420
323,813
24,641
1,244
71,872
62,153
72,689
28,504
3,173
682,193
2,489
19,209
36,605
2,901
7,945
69,149
215,810
433,184
58,302
251,205
2,254,281
59,500
124,449
347,610
935,209
610,495
425,203
271,644
5,986,892
161,157
383,744
53,751
241,059
1,929,011
34,859
123,205
275,738
871,806
535,806
393,499
266,471
5,270,106
23,118
438,084
399,169
18,870
48,948
928,189
20,629
418,875
362,564
15,969
41,003
859,040
54,653
49,440
4,551
10,146
325,270
24,641
1,244
71,872
63,403
74,689
31,704
5,173
716,786
2,489
19,209
36,605
2,901
7,945
69,149
187
Continued on next page...
STATE OF ALABAMA
DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES
All Agencies and Appropriations, Non-GAAP, Budget Basis
(Continued from previous page)
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Postsecondary Education
Adult Education
Adult Education: Adult Basic Education
Firefighters-Fire College: Firefighters/Fire College
Industrial Training: AIDT/Development Program
Industrial Training: AIDT/Training Program
Industrial Training: AIDT/Workforce Development
Postsecondary Administration
Postsecondary Administration: Postsecondary/Chancellor's
Postsecondary-Prison Education: Prison Education-Operations and Maintenance
Postsecondary-Special Line Items: Mine Safety
Postsecondary-Special Line Items: Special Populations Training
Postsecondary-Technical Colleges
Postsecondary-Technical Colleges: Truck Driver Training-CACC
Postsecondary-Two Year Colleges
Postsecondary-Two Year Colleges: Alabama Technology Network
Postsecondary-Two Year Colleges: Marion Military Institute
Postsecondary-Two Year Colleges: Two Year Colleges/Operations and Maintenance
Postsecondary-Two Year Colleges: Workforce Development
Support of State Universities: Athens State - Operations and Maintenance
Support of State Universities: Fiscal Stabilization Fund
TOTAL Postsecondary Education
Public Health
Administrative Services
Children's Health Insurance
Emergency Medical Service Education
Family Practice Rural Health
Public Health Services
TOTAL Public Health
Public Safety
Administrative Services
Police Services
Public Safety Support Services
Readiness and Recovery
TOTAL Public Safety
Public Service Commission
Regulatory Services
TOTAL Public Service Commission
Rehabilitation Services
Direct Client Services-Handicap
TOTAL Rehabilitation Services
Revenue
State Revenue Administration
TOTAL Revenue
188
General Fund
Variance
Actual
Budget
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,042
-
-
-
36,372
46,414
9,819
-
-
-
35,561
45,380
223
-
-
-
811
1,034
5,593
60,065
5,310
324
71,292
4,790
54,959
4,444
-
64,193
803
5,106
866
324
7,099
-
-
-
-
-
-
28
28
27
27
1
1
92
92
72
72
20
20
Education Trust Fund
Variance
Actual
Budget
Earmarked Funds
Variance
Actual
Budget
Total
Variance
Actual
Budget
-
15,002
3,603
5,187
5,148
23,239
-
5,758
8,221
240
5,146
-
250
-
4,755
5,926
270,321
6,227
10,901
-
369,924
-
11,545
3,603
5,187
5,148
23,239
-
5,052
8,221
240
4,858
-
250
-
4,755
5,926
270,321
5,174
10,901
-
364,420
-
3,457
-
-
-
-
-
706
-
-
288
-
-
-
-
-
-
1,053
-
-
5,504
12,745
-
-
-
-
-
6,711
58
-
-
-
2,500
-
25,159
-
-
17,736
5,581
-
965
71,455
9,862
-
-
-
-
-
2,529
35
-
-
-
1,962
-
19,716
-
-
16,123
4,389
-
887
55,503
2,883
-
-
-
-
-
4,182
23
-
-
-
538
-
5,443
-
-
1,613
1,192
-
78
15,952
12,745
15,002
3,603
5,187
5,148
23,239
6,711
5,816
8,221
240
5,146
2,500
250
25,159
4,755
5,926
288,057
11,808
10,901
965
441,379
9,862
11,545
3,603
5,187
5,148
23,239
2,529
5,087
8,221
240
4,858
1,962
250
19,716
4,755
5,926
286,444
9,563
10,901
887
419,923
2,883
3,457
-
-
-
-
4,182
729
-
-
288
538
-
5,443
-
-
1,613
2,245
-
78
21,456
957
-
1,482
1,561
11,829
15,829
957
-
1,482
1,462
11,816
15,717
-
-
-
99
13
112
31,737
203,150
-
-
540,009
774,896
20,530
169,279
-
-
460,626
650,435
11,207
33,871
-
-
79,383
124,461
42,736
203,150
1,482
1,561
588,210
837,139
31,306
169,279
1,482
1,462
508,003
711,532
11,430
33,871
-
99
80,207
125,607
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
43,685
51,225
18,416
-
113,326
36,193
31,425
13,213
-
80,831
7,492
19,800
5,203
-
32,495
49,278
111,290
23,726
324
184,618
40,983
86,384
17,657
-
145,024
8,295
24,906
6,069
324
39,594
-
-
-
-
-
-
22,047
22,047
16,122
16,122
5,925
5,925
22,047
22,047
16,122
16,122
5,925
5,925
33,501
33,501
33,499
33,499
2
2
133,751
133,751
107,532
107,532
26,219
26,219
167,280
167,280
141,058
141,058
26,222
26,222
-
-
-
-
-
-
140,468
140,468
134,449
134,449
6,019
6,019
140,560
140,560
134,521
134,521
6,039
6,039
189
Continued on next page...
STATE OF ALABAMA
DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES
All Agencies and Appropriations, Non-GAAP, Budget Basis
(Continued from previous page)
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Secretary of State
Administrative Support Service
Administrative Support Service: Administration of HAVA
Administrative Support Service: Dist Public Documents
Administrative Support Service: Printing of Acts/Journals
Administrative Support Service: Printing of Codes
Administrative Support Service: Secretary of State
Special Services: Training Elected Officials
TOTAL Secretary of State
Transportation
Aviation Stimulus
General Administration
General Aviation and Aeronautic
Roads and Transit Stimulus
Surface Transportation Improvements
TOTAL Transportation
Treasurer
Fiscal Management
TOTAL Treasurer
Youth Services
Community Educational Programs
Financial Assistance
Youth Services
Youth Services Camp Programs
TOTAL Youth Services
Colleges and Universities
Alabama Agricultural and Mechanical University
Support of State Universities: Agriculture Research Station Fixed Costs
Support of State Universities: Alabama A&M-Agriculture Research Extension State Match
Support of State Universities: Alabama A&M-Miles College
Support of State Universities: Alabama A&M-Operations and Maintenance
Support of State Universities: Fiscal Stabilization Fund
Support of State Universities: Urban Affairs and Non-Traditional Program
Total Alabama Agricultural and Mechanical University
Alabama Institute for the Deaf and Blind
Alabama Institute for the Deaf and Blind- Adult Programs
Alabama Institute for the Deaf and Blind- Children and Youth Programs
Alabama Institute for the Deaf and Blind- Industries for the Blind
Total Alabama Institute for the Deaf and Blind
Alabama State University
Support of State Universities: Alabama State University-Operations and Maintenance
Support of State Universities: Fiscal Stabilization Fund
Total Alabama State University
190
General Fund
Variance
Actual
Budget
-
-
326
825
180
1,788
57
3,176
-
-
292
807
176
1,507
8
2,790
-
-
34
18
4
281
49
386
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,441
2,441
2,007
2,007
434
434
-
-
9,847
4,233
14,080
-
-
9,585
3,995
13,580
-
-
262
238
500
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Education Trust Fund
Variance
Actual
Budget
Earmarked Funds
Variance
Actual
Budget
Total
Variance
Actual
Budget
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,827
15,400
-
-
-
611
-
19,838
1,733
1,073
-
-
-
376
-
3,182
2,094
14,327
-
-
-
235
-
16,656
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
23,004
164,116
31,338
1,044,798
1,772,413
3,035,669
5,828
118,113
19,508
286,979
931,261
1,361,689
17,176
46,003
11,830
757,819
841,152
1,673,980
3,827
15,400
326
825
180
2,399
57
23,014
1,733
1,073
292
807
176
1,883
8
5,972
23,004
164,116
31,338
1,044,798
1,772,413
3,035,669
5,828
118,113
19,508
286,979
931,261
1,361,689
2,094
14,327
34
18
4
516
49
17,042
17,176
46,003
11,830
757,819
841,152
1,673,980
-
-
-
-
-
-
3,850
3,850
2,741
2,741
1,109
1,109
6,291
6,291
4,748
4,748
1,543
1,543
4,724
6,997
50,379
-
62,100
4,724
6,982
48,498
-
60,204
-
15
1,881
-
1,896
-
1,094
28,769
-
29,863
-
407
25,390
-
25,797
-
687
3,379
-
4,066
4,724
8,091
88,995
4,233
106,043
4,724
7,389
83,473
3,995
99,581
-
702
5,522
238
6,462
264
1,200
362
30,860
-
3,558
36,244
264
1,200
362
30,860
-
3,558
36,244
-
-
-
-
-
-
-
-
-
-
-
3,360
-
3,360
-
-
-
-
3,360
-
3,360
-
-
-
-
-
-
-
264
1,200
362
30,860
3,360
3,558
39,604
264
1,200
362
30,860
3,360
3,558
39,604
-
-
-
-
-
-
-
9,147
25,611
7,419
42,177
9,147
25,611
7,419
42,177
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9,147
25,611
7,419
42,177
9,147
25,611
7,419
42,177
-
-
-
-
39,178
-
39,178
39,178
-
39,178
-
-
-
-
3,260
3,260
-
3,260
3,260
-
-
-
39,178
3,260
42,438
39,178
3,260
42,438
-
-
-
191
Continued on next page...
STATE OF ALABAMA
DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES
All Agencies and Appropriations, Non-GAAP, Budget Basis
(Continued from previous page)
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Auburn University
Support of State Universities: Auburn University System-Operations and Maintenance
Support of State Universities: Auburn University-AUM Operations and Maintenance
Support of State Universities: Auburn/Agriculture Experiment Station
Support of State Universities: Auburn/Cooperative Extension Service
Support of State Universities: Fiscal Stabilization Fund
Total Auburn University
Jacksonville State University
Support of State Universities: Alabama Film Initiative Program
Support of State Universities: Fiscal Stabilization Fund
Support of State Universities: Jacksonville State University-Operations and Maintenance
Total Jacksonville State University
Troy State University
Support of State Universities: Fiscal Stabilization Fund
Support of State Universities: Troy State University System-Operations and Maintenance
Total Troy State University
University of Alabama - Birmingham
Support of State Universities
Support of State Universities: Chauncey Sparks Center/University of Alabama Birmingham
Support of State Universities: Fiscal Stabilization Fund
Support of State Universities: UAB Cancer Center
Support of State Universities: University of Alabama-Birmingham-Operations and Maintenance
Total University of Alabama - Birmingham
University of Alabama - Huntsville
Support of State Universities: Fiscal Stabilization Fund
Support of State Universities: University of Alabama Huntsville-Operations and Maintenance
Total University of Alabama - Huntsville
University of Alabama - Tuscaloosa
Support of State Universities: Fiscal Stabilization Fund
Support of State Universities: University of Alabama-Tuscaloosa-Operations and Maintenance
Total University of Alabama - Tuscaloosa
University of Montevallo
Support of State Universities: Fiscal Stabilization Fund
Support of State Universities: University of Montevallo-Operations and Maintenance
Total University of Montevallo
University of North Alabama
Support of State Universities: Fiscal Stabilization Fund
Support of State Universities: University of North Alabama-Operations and Maintenance
Total University of North Alabama
University of South Alabama
Support of State Universities: Fiscal Stabilization Fund
Support of State Universities: University of South Alabama-Operations and Maintenance
Total University of South Alabama
University of West Alabama
Support of State Universities: Fiscal Stabilization Fund
Support of State Universities: University of West Alabama-Operations and Maintenance
Total University of West Alabama
TOTAL Colleges and Universities
192
General Fund
Variance
Actual
Budget
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Education Trust Fund
Variance
Actual
Budget
Earmarked Funds
Variance
Actual
Budget
Total
Variance
Actual
Budget
152,701
22,843
29,320
31,108
-
235,972
152,701
22,843
29,320
31,108
-
235,972
-
-
-
-
-
-
-
-
-
-
25,884
25,884
-
-
-
-
22,945
22,945
-
-
-
-
2,939
2,939
152,701
22,843
29,320
31,108
25,884
261,856
152,701
22,843
29,320
31,108
22,945
258,917
-
-
-
-
2,939
2,939
453
-
35,575
36,028
453
-
35,575
36,028
-
-
-
-
-
3,344
-
3,344
-
3,344
-
3,344
-
-
-
-
453
3,344
35,575
39,372
453
3,344
35,575
39,372
-
-
-
-
-
44,112
44,112
-
44,112
44,112
-
-
-
4,599
-
4,599
4,599
-
4,599
-
-
-
4,599
44,112
48,711
4,599
44,112
48,711
-
-
-
-
3,436
-
4,088
248,562
256,086
-
3,436
-
4,088
248,562
256,086
-
-
-
-
-
-
54
-
24,912
-
-
24,966
-
-
22,221
-
-
22,221
54
-
2,691
-
-
2,745
54
3,436
24,912
4,088
248,562
281,052
-
3,436
22,221
4,088
248,562
278,307
54
-
2,691
-
-
2,745
-
43,073
43,073
-
43,073
43,073
-
-
-
4,184
-
4,184
2,928
-
2,928
1,256
-
1,256
4,184
43,073
47,257
2,928
43,073
46,001
1,256
-
1,256
-
138,541
138,541
-
138,541
138,541
-
-
-
14,699
-
14,699
14,699
-
14,699
-
-
-
14,699
138,541
153,240
14,699
138,541
153,240
-
-
-
-
17,408
17,408
-
17,408
17,408
-
-
-
1,615
-
1,615
1,507
-
1,507
108
-
108
1,615
17,408
19,023
1,507
17,408
18,915
108
-
108
-
24,562
24,562
-
24,562
24,562
-
-
-
2,214
-
2,214
2,034
-
2,034
180
-
180
2,214
24,562
26,776
2,034
24,562
26,596
180
-
180
-
97,860
97,860
-
97,860
97,860
-
-
-
10,769
-
10,769
9,990
-
9,990
779
-
779
10,769
97,860
108,629
9,990
97,860
107,850
779
-
779
-
12,737
12,737
1,023,978
-
12,737
12,737
1,023,978
-
-
-
-
1,204
-
1,204
100,098
1,059
-
1,059
91,946
145
-
145
8,152
1,204
12,737
13,941
1,124,076
1,059
12,737
13,796
1,115,924
145
-
145
8,152
193
Continued on next page...
STATE OF ALABAMA
DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES
All Agencies and Appropriations, Non-GAAP, Budget Basis
(Continued from previous page)
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Other
Accountancy Board
Professional and Occupational Licensure and Regulation
Total Accountancy Board
Agricultural Museum Board
Agricultural Promotional Program
Total Agricultural Museum Board
Agriculture Center Board
Agricultural Development Services: Fairs and Livestock Shows
Agricultural Development Services: Livestock Coliseum
Agricultural Development Services: Operations
Total Agriculture Center Board
Alabama Board of Court Reporting
Professional and Occupational Licensure and Regulation
Total Alabama Board of Court Reporting
Alabama Boxing Commission
Licensing, Regulation and Enforcement
Total Alabama Boxing Commission
Alabama Construction Recruitment
Recruitment/Training Promotion
Total Alabama Construction Recruitment
Alabama Law Institute
Support - Other Educational Activities
Total Alabama Law Institute
Alabama Onsite Wastewater Board
Professional and Occupational Licensure and Regulation
Total Alabama Onsite Wastewater Board
Alabama Security Regulatory Board
Licensing, Regulation and Enforcement
Total Alabama Security Regulatory Board
Alabama Trust Fund
Alabama Natural Heritage
Fiscal Management
Total Alabama Trust Fund
Alcoholic Beverage Control Board
Administrative Services
Alcoholic Beverage Management
Licensing, Regulation and Enforcement
Total Alcoholic Beverage Control Board
Architects Registration Board
Professional and Occupational Licensure and Regulation
Total Architects Registration Board
Archives and History
Historical Resources Management
Total Archives and History
Assisted Living Examiners Board
Professional and Occupational Licensure and Regulation
Total Assisted Living Examiners Board
194
General Fund
Variance
Actual
Budget
-
-
-
-
-
-
127
127
87
87
40
40
102
237
587
926
99
210
441
750
3
27
146
176
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
882
882
867
867
15
15
-
-
-
-
-
-
-
-
-
-
-
-
-
19
19
-
18
18
-
1
1
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,055
2,055
2,009
2,009
46
46
-
-
-
-
-
-
Education Trust Fund
Variance
Actual
Budget
Earmarked Funds
Variance
Actual
Budget
Total
Variance
Actual
Budget
-
-
-
-
-
-
1,475
1,475
1,159
1,159
316
316
1,475
1,475
1,159
1,159
316
316
-
-
-
-
-
-
-
-
-
-
-
-
127
127
87
87
40
40
-
-
-
-
-
-
-
-
-
-
-
-
-
525
-
525
-
332
-
332
-
193
-
193
102
762
587
1,451
99
542
441
1,082
3
220
146
369
-
-
-
-
-
-
105
105
72
72
33
33
105
105
72
72
33
33
-
-
-
-
-
-
150
150
-
-
150
150
150
150
-
-
150
150
-
-
-
-
-
-
1,750
1,750
318
318
1,432
1,432
1,750
1,750
318
318
1,432
1,432
227
227
222
222
5
5
-
-
-
-
-
-
1,109
1,109
1,089
1,089
20
20
-
-
-
-
-
-
450
450
311
311
139
139
450
450
311
311
139
139
-
-
-
-
-
-
50
50
-
-
50
50
50
50
-
-
50
50
-
-
-
-
-
-
-
-
-
890
-
890
452
-
452
438
-
438
890
19
909
452
18
470
438
1
439
-
-
-
-
-
-
-
-
-
-
-
-
7,797
54,813
17,975
80,585
5,728
47,298
14,947
67,973
2,069
7,515
3,028
12,612
7,797
54,813
17,975
80,585
5,728
47,298
14,947
67,973
2,069
7,515
3,028
12,612
-
-
-
-
-
-
482
482
398
398
84
84
482
482
398
398
84
84
3,266
3,266
3,266
3,266
-
-
1,417
1,417
313
313
1,104
1,104
6,738
6,738
5,588
5,588
1,150
1,150
-
-
-
-
-
-
86
86
59
59
27
27
86
86
59
59
27
27
195
Continued on next page...
STATE OF ALABAMA
DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES
All Agencies and Appropriations, Non-GAAP, Budget Basis
(Continued from previous page)
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Athlete Agent Regulatory Commission
Professional and Occupational Licensure and Regulation
Total Athlete Agent Regulatory Commission
Athletic Trainers Board
Professional and Occupational Licensure and Regulation
Total Athletic Trainers Board
Auctioneers Board
Professional and Occupational Licensure and Regulation
Total Auctioneers Board
Banking
Charter Licensure and Regulation Financial
Total Banking
Board of Adjustment
Special Services: Damage Claims-Board of Adjustment
Special Services: Death Claims-Board of Adjustment
Total Board of Adjustment
Board of Prosthetists and Orthotists
Professional and Occupational Licensure and Regulation
Total Board of Prosthetists and Orthotists
Board of Respiratory Therapy
Professional and Occupational Licensure and Regulation
Total Board of Respiratory Therapy
Building Commission
Professional and Occupational Licensure and Regulation
Special Services
Total Building Commission
Child Abuse Prevention
Social Services
Total Child Abuse Prevention
Children Services Facilitation
Human Services
Total Children Services Facilitation
Children's Affairs
Children's Policy Council
Social Services
Total Children's Affairs
Chiropractic Examiners Board
Professional and Occupational Licensure and Regulation
Total Chiropractic Examiners Board
Choctawhatchee, Pea and Yellow Rivers Watershed Management Authority
Water Resource Development
Total Choctawhatchee, Pea and Yellow Rivers Watershed Management Authority
Clerk of the House
Legislative Operations and Support
Total Clerk of the House
Commission on Uniform State Laws
Special Services
Total Commission on Uniform State Laws
196
General Fund
Variance
Actual
Budget
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12
1,037
1,049
9
1,014
1,023
3
23
26
-
-
-
-
-
-
-
-
-
-
-
-
-
267
267
-
244
244
-
23
23
-
-
-
-
-
-
-
-
-
-
-
-
-
391
391
-
377
377
-
14
14
-
-
-
-
-
-
382
382
330
330
52
52
1,853
1,853
765
765
1,088
1,088
68
68
19
19
49
49
Education Trust Fund
Variance
Actual
Budget
Earmarked Funds
Variance
Actual
Budget
Total
Variance
Actual
Budget
-
-
-
-
-
-
51
51
9
9
42
42
51
51
9
9
42
42
-
-
-
-
-
-
51
51
48
48
3
3
51
51
48
48
3
3
-
-
-
-
-
-
195
195
166
166
29
29
195
195
166
166
29
29
-
-
-
-
-
-
16,248
16,248
12,950
12,950
3,298
3,298
16,248
16,248
12,950
12,950
3,298
3,298
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12
1,037
1,049
9
1,014
1,023
3
23
26
-
-
-
-
-
-
140
140
125
125
15
15
140
140
125
125
15
15
-
-
-
-
-
-
127
127
121
121
6
6
127
127
121
121
6
6
-
-
-
-
-
-
-
-
-
128
1,749
1,877
112
1,411
1,523
16
338
354
128
2,016
2,144
112
1,655
1,767
16
361
377
-
-
-
-
-
-
8,972
8,972
8,280
8,280
692
692
8,972
8,972
8,280
8,280
692
692
-
-
-
-
-
-
2,835
2,835
2,590
2,590
245
245
2,835
2,835
2,590
2,590
245
245
-
18,188
18,188
-
17,301
17,301
-
887
887
959
190
1,149
303
174
477
656
16
672
959
18,769
19,728
303
17,852
18,155
656
917
1,573
-
-
-
-
-
-
536
536
322
322
214
214
536
536
322
322
214
214
-
-
-
-
-
-
186
186
146
146
40
40
568
568
476
476
92
92
-
-
-
-
-
-
-
-
-
-
-
-
1,853
1,853
765
765
1,088
1,088
-
-
-
-
-
-
-
-
-
-
-
-
68
68
19
19
49
49
197
Continued on next page...
STATE OF ALABAMA
DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES
All Agencies and Appropriations, Non-GAAP, Budget Basis
(Continued from previous page)
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
General Fund
Variance
Actual
Budget
Conservation and Natural Resources
Administrative Services
Game and Fish
Marine Police
Marine Resources
Outdoor Recreation Sites and Services
State Land Management
Total Conservation and Natural Resources
Cosmetology Board
Professional and Occupational Licensure and Regulation
Total Cosmetology Board
Council on the Arts
Fine Arts
Total Council on the Arts
Counseling Examiners Board
Professional and Occupational Licensure and Regulation
Total Counseling Examiners Board
Court of Civil Appeals
Court Operations
Total Court of Civil Appeals
Court of Criminal Appeals
Court Operations
Total Court of Criminal Appeals
Credit Union Administration
Charter Licensure and Regulation Financial
Total Credit Union Administration
Crime Victims Compensation Commission
Special Services
Total Crime Victims Compensation Commission
Criminal Justice Information Center
Criminal Justice Infomation Services
Total Criminal Justice Information Center
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,847
3,847
3,536
3,536
311
311
4,599
4,599
4,046
4,046
553
553
-
-
-
-
-
-
-
-
-
-
-
-
2,002
2,002
1,958
1,958
44
44
198
Education Trust Fund
Variance
Actual
Budget
Earmarked Funds
Variance
Actual
Budget
Total
Variance
Actual
Budget
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13,499
37,598
11,678
18,795
7,058
40,123
128,751
9,520
33,678
8,661
14,742
6,713
14,150
87,464
3,979
3,920
3,017
4,053
345
25,973
41,287
13,499
37,598
11,678
18,795
7,058
40,123
128,751
9,520
33,678
8,661
14,742
6,713
14,150
87,464
3,979
3,920
3,017
4,053
345
25,973
41,287
-
-
-
-
-
-
2,665
2,665
2,116
2,116
549
549
2,665
2,665
2,116
2,116
549
549
4,546
4,546
4,528
4,528
18
18
1,136
1,136
1,136
1,136
-
-
5,682
5,682
5,664
5,664
18
18
-
-
-
-
-
-
410
410
315
315
95
95
410
410
315
315
95
95
-
-
-
-
-
-
-
-
-
-
-
-
3,847
3,847
3,536
3,536
311
311
-
-
-
-
-
-
-
-
-
-
-
-
4,599
4,599
4,046
4,046
553
553
-
-
-
-
-
-
1,697
1,697
1,142
1,142
555
555
1,697
1,697
1,142
1,142
555
555
-
-
-
-
-
-
4,625
4,625
2,822
2,822
1,803
1,803
4,625
4,625
2,822
2,822
1,803
1,803
-
-
-
-
-
-
15,351
15,351
7,544
7,544
7,807
7,807
17,353
17,353
9,502
9,502
7,851
7,851
199
Continued on next page...
STATE OF ALABAMA
DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES
All Agencies and Appropriations, Non-GAAP, Budget Basis
(Continued from previous page)
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Debt Service and Reserve
Debt Service
Debt Service: 2001-E Docks/Local Match Bonds
Debt Service: 2002-A GO Bonds
Debt Service: 2005-A GO Bonds
Debt Service: Administrative Office of Courts
Debt Service: Alabama Building Renovation Fin Authority
Debt Service: Department of Corrections
Debt Service: Department of Mental Health
Debt Service: Department of Public Health
Debt Service: General Obligation 1999-B Refunding
Debt Service: GO 2001-A Agriculture Development Bond
Debt Service: GO 2001-B Forensic Sciences
Debt Service: GO 2001-C Parks System Bonds
Debt Service: GO 2001-D Historic Site Bonds
Debt Service: GO 2006 Debt Service
Debt Service: GO 2007-A Debt Service
Total Debt Service and Reserve
Development Office
Industrial Development: Alabama Development Office
Total Development Office
Dieteticians and Nutritionists Examining Board
Professional and Occupational Licensure and Regulation
Total Dieteticians and Nutritionists Examining Board
District Attorneys
Court Operations
Total District Attorneys
Educational Television Commission
Educational Television
Total Educational Television Commission
Electrical Contractors Board
Professional and Occupational Licensure and Regulation
Total Electrical Contractors Board
Electronic Security Board
Professional and Occupational Licensure and Regulation
Total Electronic Security Board
Environmental Management
Environmental Management
Total Environmental Management
200
General Fund
Variance
Actual
Budget
-
-
-
-
-
-
-
-
-
1,871
-
-
547
-
-
-
2,418
-
-
-
-
-
-
-
-
-
1,871
-
-
547
-
-
-
2,418
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,814
3,814
3,591
3,591
223
223
-
-
-
-
-
-
36,148
36,148
35,345
35,345
803
803
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Education Trust Fund
Variance
Actual
Budget
Earmarked Funds
Variance
Actual
Budget
Total
Variance
Actual
Budget
-
-
-
6,006
-
-
-
-
-
-
-
-
-
-
-
-
6,006
-
-
-
6,006
-
-
-
-
-
-
-
-
-
-
-
-
6,006
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
54,955
7,675
4,145
5,481
3,973
4,934
2,171
1,460
3,527
1,871
4,604
1,369
8,490
473
4,776
24,535
134,439
50,280
7,674
4,145
1,845
3,973
2,906
2,138
1,460
3,515
-
1,004
294
1,383
473
4,776
24,535
110,401
4,675
1
-
3,636
-
2,028
33
-
12
1,871
3,600
1,075
7,107
-
-
-
24,038
54,955
7,675
4,145
11,487
3,973
4,934
2,171
1,460
3,527
3,742
4,604
1,369
9,037
473
4,776
24,535
142,863
50,280
7,674
4,145
7,851
3,973
2,906
2,138
1,460
3,515
1,871
1,004
294
1,930
473
4,776
24,535
118,825
4,675
1
-
3,636
-
2,028
33
-
12
1,871
3,600
1,075
7,107
-
-
-
24,038
-
-
-
-
-
-
1,910
1,910
1,430
1,430
480
480
5,724
5,724
5,021
5,021
703
703
-
-
-
-
-
-
150
150
111
111
39
39
150
150
111
111
39
39
-
-
-
-
-
-
120
120
120
120
-
-
36,268
36,268
35,465
35,465
803
803
6,742
6,742
6,714
6,714
28
28
715
715
566
566
149
149
7,457
7,457
7,280
7,280
177
177
-
-
-
-
-
-
428
428
307
307
121
121
428
428
307
307
121
121
-
-
-
-
-
-
334
334
314
314
20
20
334
334
314
314
20
20
-
-
-
-
-
-
138,905
138,905
109,126
109,126
29,779
29,779
138,905
138,905
109,126
109,126
29,779
29,779
201
Continued on next page...
STATE OF ALABAMA
DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES
All Agencies and Appropriations, Non-GAAP, Budget Basis
(Continued from previous page)
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
ETF Direct Disbursements
Debt Service: Auburn University Endowment
Debt Service: Grove Hill Endowment
Debt Service: University of Alabama Endowment
Employee Benefits: Teachers Retirement System Unused Sick Leave Death Benefits
Financial Assistance: Alabama School of Fine Arts
Financial Assistance: American Legion Scholarships
Financial Assistance: Lee County Schools
Financial Assistance: Walker County School System
Special Services: Space Science Exhibit Commission
Support - Other Educational Activities: Dental Scholarships
Support - Other Educational Activities: Marine Environmental
Support - Other Educational Activities: Optometric Scholarships
Total ETF Direct Disbursements
ETF Non-State
Support - Other Educational Activities: Lyman Ward Military Academy
Support - Other Educational Activities: Talladega College
Support - Other Educational Activities: Tuskegee University
Total ETF Non-State
Ethics Commission
Regulation of Public Officials and Employees
Total Ethics Commission
Farmers' Market Authority
Agricultural Development Services
Total Farmers' Market Authority
Finance Special Appropriations
Administration Service and Logistical Support: Removal of Prisoners
Criminal Investigation: Arrest of Absconding Felons
Executive Direction: Governors' Widow Retirement
Fiscal Management: Cash Management Improvement Act
Institutional Service Corrections: Feeding of Prisoners
Legal Advice and Legal Service: Automatic Appeal Expense
Legal Advice and Legal Service: Court Assessed Cost not Provided
Legal Advice and Legal Service: Law Enforcement Legal Defense
Special Services: Court Assessed Cost not Provided
Special Services: Election Expenses
Special Services: Emergency Fund, Departmental
Special Services: Estate of Robert E Doyle
Special Services: Registration of Voters
Total Finance Special Appropriations
Finance Special Funds
Appropriation Transfers
Non-State
Special Services
Total Finance Special Funds
Forensic Sciences
Forensic Science Services
Total Forensic Sciences
202
General Fund
Variance
Actual
Budget
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,693
1,693
1,338
1,338
355
355
630
630
603
603
27
27
720
53
14
737
8,550
35
262
3
4,748
7,200
35
116
2,450
24,923
704
10
14
4
8,360
-
180
-
4,624
7,040
-
116
2,394
23,446
16
43
-
733
190
35
82
3
124
160
35
-
56
1,477
-
-
-
-
-
-
-
-
-
-
-
-
12,240
12,240
11,857
11,857
383
383
Education Trust Fund
Variance
Actual
Budget
Earmarked Funds
Variance
Actual
Budget
Total
Variance
Actual
Budget
20
1
61
2,162
6,276
113
65
861
520
268
3,499
150
13,996
20
1
61
1,894
6,276
101
65
861
520
268
3,499
150
13,716
-
-
-
268
-
12
-
-
-
-
-
-
280
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
20
1
61
2,162
6,276
113
65
861
520
268
3,499
150
13,996
20
1
61
1,894
6,276
101
65
861
520
268
3,499
150
13,716
-
-
-
268
-
12
-
-
-
-
-
-
280
249
837
9,494
10,580
249
837
9,494
10,580
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
249
837
9,494
10,580
249
837
9,494
10,580
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,693
1,693
1,338
1,338
355
355
-
-
-
-
-
-
4,689
4,689
2,651
2,651
2,038
2,038
5,319
5,319
3,254
3,254
2,065
2,065
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
720
53
14
737
8,550
35
262
3
4,748
7,200
35
116
2,450
24,923
704
10
14
4
8,360
-
180
-
4,624
7,040
-
116
2,394
23,446
16
43
-
733
190
35
82
3
124
160
35
-
56
1,477
-
-
-
-
-
-
-
-
-
-
-
-
204,534
36,172
44
240,750
204,534
36,172
44
240,750
-
-
-
-
204,534
36,172
44
240,750
204,534
36,172
44
240,750
-
-
-
-
-
-
-
-
-
-
16,338
16,338
11,272
11,272
5,066
5,066
28,578
28,578
23,129
23,129
5,449
5,449
203
Continued on next page...
STATE OF ALABAMA
DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES
All Agencies and Appropriations, Non-GAAP, Budget Basis
(Continued from previous page)
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Foresters Registration Board
Professional and Occupational Licensure and Regulation
Total Foresters Registration Board
Forestry Commission
Forest Resources Protection and Development
Total Forestry Commission
Forever Wild Land Trust
Administrative Services
Total Forever Wild Land Trust
Fringe Benefit Accounts
Fringe Benefits: Judicial Retirement - General Fund Share
Total Fringe Benefit Accounts
Funeral Services Board
Professional and Occupational Licensure and Regulation
Total Funeral Services Board
General Contractors Licensing Board
Professional and Occupational Licensure and Regulation
Total General Contractors Licensing Board
General Fund Direct Disbursements
Employment and Social Opportunities: Women's Hall of Fame
Fine Arts: Music Hall of Fame
Historical Resources Management: Brierfield Ironworks Park
Historical Resources Management: Cahaba Advisory Committee
Historical Resources Management: Citizenship Trust
Historical Resources Management: Historic Blakeley Authority
Historical Resources Management: Historic Chattahoochee Commission
Historical Resources Management: Historic Ironworks Commission
Historical Resources Management: Men's Hall of Fame
Historical Resources Management: Sports Hall of Fame
Historical Resources Management: St. Stephens Historical Commission
Tourism and Travel Promotion: Motor Sports Hall of Fame
Water Resource Development: Bear Creek Development Authority
Water Resource Development: Choccolocco Creek Watershed
Water Resource Development: Tennessee-Tombigbee Waterway
Total General Fund Direct Disbursements
General Fund Non-State
Non-State: Coalition Against Domestic Violence
Non-State: Kidney Foundation, Inc
Non-State: Network of Children's Advocacy Centers
Total General Fund Non-State
Geological Survey
Mineral, Energy, and Water Resources
Total Geological Survey
Governor's Office of Faith-Based and Community Initiatives
Executive Direction
Total Governor's Office of Faith-Based and Community Initiatives
Governor's Office on Disability
Executive Direction
Total Governor's Office on Disability
204
General Fund
Variance
Actual
Budget
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,983
1,983
1,983
1,983
-
-
-
-
-
-
-
-
-
-
-
-
-
-
16
270
81
203
252
182
263
153
16
164
212
81
29
15
122
2,059
15
264
79
198
246
178
257
150
15
161
207
79
28
15
119
2,011
1
6
2
5
6
4
6
3
1
3
5
2
1
-
3
48
446
203
892
1,541
436
198
872
1,506
10
5
20
35
3,637
3,637
2,823
2,823
814
814
99
99
83
83
16
16
313
313
150
150
163
163
Education Trust Fund
Variance
Actual
Budget
Earmarked Funds
Variance
Actual
Budget
Total
Variance
Actual
Budget
-
-
-
-
-
-
200
200
86
86
114
114
200
200
86
86
114
114
-
-
-
-
-
-
36,535
36,535
28,876
28,876
7,659
7,659
36,535
36,535
28,876
28,876
7,659
7,659
-
-
-
-
-
-
7,628
7,628
6,638
6,638
990
990
7,628
7,628
6,638
6,638
990
990
-
-
-
-
-
-
-
-
-
-
-
-
1,983
1,983
1,983
1,983
-
-
-
-
-
-
-
-
268
268
209
209
59
59
268
268
209
209
59
59
-
-
-
-
-
-
1,919
1,919
1,263
1,263
656
656
1,919
1,919
1,263
1,263
656
656
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
16
270
81
203
252
182
263
153
16
164
212
81
29
15
122
2,059
15
264
79
198
246
178
257
150
15
161
207
79
28
15
119
2,011
1
6
2
5
6
4
6
3
1
3
5
2
1
-
3
48
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
446
203
892
1,541
436
198
872
1,506
10
5
20
35
-
-
-
-
-
-
3,967
3,967
2,374
2,374
1,593
1,593
7,604
7,604
5,197
5,197
2,407
2,407
129
129
113
113
16
16
3,582
3,582
2,067
2,067
1,515
1,515
3,810
3,810
2,263
2,263
1,547
1,547
-
-
-
-
-
-
-
-
-
-
-
-
313
313
150
150
163
163
205
Continued on next page...
STATE OF ALABAMA
DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES
All Agencies and Appropriations, Non-GAAP, Budget Basis
(Continued from previous page)
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Health Planning and Development
Health Planning Development and Regulation
Total Health Planning and Development
Hearing Instrument Dealers Board
Professional and Occupational Licensure and Regulation
Total Hearing Instrument Dealers Board
Heating, Air Conditioning, and Refrigeration Contractors Board
Professional and Occupational Licensure and Regulation
Total Heating, Air Conditioning, and Refrigeration Contractors Board
High School of Math and Science
Financial Assistance
Total High School of Math and Science
Historical Commission
Historical Resources Management: Alabama Historical Commission
Historical Resources Management: Bellemont
Historical Resources Management: Birmingham Civil Rights Institute
Historical Resources Management: Birmingham Unity Breakfast
Historical Resources Management: Black Heritage
Historical Resources Management: Buffalo Soldier Memorial
Historical Resources Management: Capitol Preservation
Historical Resources Management: Civil Rights Foot Soldiers
Historical Resources Management: Collinsville Clock
Historical Resources Management: Confederate Park-Soldier Fund
Historical Resources Management: Donnell House
Historical Resources Management: Helen Keller Birthplace
Historical Resources Management: Houston Memorial Library
Historical Resources Management: Jesse Owens Park
Historical Resources Management: Katrina Grants
Historical Resources Management: Nat King Cole Project
Historical Resources Management: Past Time Theatre
Historical Resources Management: Ralph Abernathy House
Historical Resources Management: Roxy Theatre
Historical Resources Management: Russell County Historical Commission
Historical Resources Management: Tallapoosa Historical Museum
Historical Resources Management: USS Alabama Battleship Commission
Historical Resources Management: Voting Rights Museum
Total Historical Commission
Home Builders Licensure Board
Professional and Occupational Licensure and Regulation
Total Home Builders Licensure Board
Home Medical Equipment Services Provider Board
Professional and Occupational Licensure and Regulation
Total Home Medical Equipment Services Provider Board
Homeland Security Office
Readiness and Recovery
Total Homeland Security Office
Indian Affairs Commission
Social Services
Total Indian Affairs Commission
206
General Fund
Variance
Actual
Budget
220
220
215
215
5
5
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
597
597
516
516
81
81
151
151
142
142
9
9
Education Trust Fund
Variance
Actual
Budget
Earmarked Funds
Variance
Actual
Budget
Total
Variance
Actual
Budget
-
-
-
-
-
-
1,111
1,111
965
965
146
146
1,331
1,331
1,180
1,180
151
151
-
-
-
-
-
-
54
54
29
29
25
25
54
54
29
29
25
25
-
-
-
-
-
-
1,117
1,117
960
960
157
157
1,117
1,117
960
960
157
157
5,754
5,754
5,627
5,627
127
127
470
470
235
235
235
235
6,224
6,224
5,862
5,862
362
362
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,484
45
9
9
48
45
279
9
90
645
36
90
9
45
409
68
45
90
45
149
14
81
90
7,834
4,773
43
9
9
38
45
257
9
90
456
36
90
9
45
217
68
45
90
45
149
14
81
90
6,708
711
2
-
-
10
-
22
-
-
189
-
-
-
-
192
-
-
-
-
-
-
-
-
1,126
5,484
45
9
9
48
45
279
9
90
645
36
90
9
45
409
68
45
90
45
149
14
81
90
7,834
4,773
43
9
9
38
45
257
9
90
456
36
90
9
45
217
68
45
90
45
149
14
81
90
6,708
711
2
-
-
10
-
22
-
-
189
-
-
-
-
192
-
-
-
-
-
-
-
-
1,126
-
-
-
-
-
-
4,404
4,404
2,491
2,491
1,913
1,913
4,404
4,404
2,491
2,491
1,913
1,913
-
-
-
-
-
-
255
255
203
203
52
52
255
255
203
203
52
52
-
-
-
-
-
-
40,343
40,343
22,037
22,037
18,306
18,306
40,940
40,940
22,553
22,553
18,387
18,387
-
-
-
-
-
-
54
54
52
52
2
2
205
205
194
194
11
11
207
Continued on next page...
STATE OF ALABAMA
DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES
All Agencies and Appropriations, Non-GAAP, Budget Basis
(Continued from previous page)
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Insurance
Regulatory Services
Total Insurance
Interior Design Registration Board
Professional and Occupational Licensure and Regulation
Total Interior Design Registration Board
Interpreters and Transliterators
Professional and Occupational Licensure and Regulation
Total Interpreters and Transliterators
Judicial Inquiry Commission
Administrative Services
Total Judicial Inquiry Commission
Knight vs. Alabama Financial Obligation
Support of State Universities: Alabama State-PhD Microbiology Program
Support of State Universities: Doctoral Program in Education-Alabama State
Support of State Universities: Knight vs Alabama 2 year Postsecondary
Support of State Universities: Scholarships to Diversify-Alabama A&M
Support of State Universities: Scholarships to Diversify-Alabama State
Support of State Universities: Trust for Educational Excellence, Base-Alabama A&M
Support of State Universities: Trust for Educational Excellence, Base-Alabama State
Support of State Universities: Trust for Educational Excellence, Match-Alabama A&M
Support of State Universities: Trust for Educational Excellence, Match-Alabama State
Total Knight vs. Alabama Financial Obligation
Labor
Regulatory Services
Total Labor
Landscape Architect Examining Board
Professional and Occupational Licensure and Regulation
Total Landscape Architect Examining Board
Legislative Building Authority
Legislative Operations and Support
Total Legislative Building Authority
Legislative Council
Legislative Operations and Support
Total Legislative Council
Legislative Fiscal Office
Legislative Operations and Support
Total Legislative Fiscal Office
Legislative Reference Service
Legislative Operations and Support
Legislative Operations and Support: Code Supplement-LRS
Legislative Operations and Support: Legislative Reference Service
Total Legislative Reference Service
Lieutenant Governor
Legislative Operations and Support
Total Lieutenant Governor
Liquefied Petroleum Gas Board
Regulatory Services
Total Liquefied Petroleum Gas Board
208
General Fund
Variance
Actual
Budget
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
883
883
467
467
416
416
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
608
608
394
394
214
214
-
-
-
-
-
-
135
135
-
-
135
135
1,308
1,308
432
432
876
876
2,383
2,383
1,684
1,684
699
699
-
162
2,859
3,021
-
158
2,664
2,822
-
4
195
199
970
970
780
780
190
190
-
-
-
-
-
-
Education Trust Fund
Variance
Actual
Budget
Earmarked Funds
Variance
Actual
Budget
Total
Variance
Actual
Budget
-
-
-
-
-
-
13,899
13,899
11,209
11,209
2,690
2,690
13,899
13,899
11,209
11,209
2,690
2,690
-
-
-
-
-
-
50
50
27
27
23
23
50
50
27
27
23
23
-
-
-
-
-
-
50
50
40
40
10
10
50
50
40
40
10
10
-
-
-
-
-
-
-
-
-
-
-
-
883
883
467
467
416
416
1,235
2,213
830
1,000
1,000
1,000
1,000
1,000
1,000
10,278
1,235
2,213
-
1,000
1,000
1,000
1,000
-
769
8,217
-
-
830
-
-
-
-
1,000
231
2,061
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,235
2,213
830
1,000
1,000
1,000
1,000
1,000
1,000
10,278
1,235
2,213
-
1,000
1,000
1,000
1,000
-
769
8,217
-
-
830
-
-
-
-
1,000
231
2,061
-
-
-
-
-
-
1,408
1,408
1,035
1,035
373
373
2,016
2,016
1,429
1,429
587
587
-
-
-
-
-
-
69
69
52
52
17
17
69
69
52
52
17
17
-
-
-
-
-
-
-
-
-
-
-
-
135
135
-
-
135
135
-
-
-
-
-
-
-
-
-
-
-
-
1,308
1,308
432
432
876
876
346
346
336
336
10
10
-
-
-
-
-
-
2,729
2,729
2,020
2,020
709
709
98
-
-
98
98
-
-
98
-
-
-
-
300
-
-
300
140
-
-
140
160
-
-
160
398
162
2,859
3,419
238
158
2,664
3,060
160
4
195
359
-
-
-
-
-
-
-
-
-
-
-
-
970
970
780
780
190
190
-
-
-
-
-
-
1,659
1,659
1,000
1,000
659
659
1,659
1,659
1,000
1,000
659
659
209
Continued on next page...
STATE OF ALABAMA
DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES
All Agencies and Appropriations, Non-GAAP, Budget Basis
(Continued from previous page)
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Manufactured Housing Commission
Regulatory Services
Total Manufactured Housing Commission
Marriage and Family Therapy Board
Professional and Occupational Licensure and Regulation
Total Marriage and Family Therapy Board
Massage Therapy Board
Professional and Occupational Licensure and Regulation
Total Massage Therapy Board
Medical Scholarships Awards Board
Support - Other Educational Activities
Total Medical Scholarships Awards Board
Military
Military Operations: Active Military Service
Military Operations: ANG Operations & Maintenance
Military Operations: BP Oil Spill
Military Operations: Bus Driver Training
Military Operations: Counter Drug
Military Operations: Dropping Allowance
Military Operations: Military- Army MCCA
Military Operations: Military Billeting
Military Operations: Operations
Military Operations: Operations and Maintenance
Military Operations: Quartering Allowance to Headquarters
Military Operations: State Defense Force
Total Military
Nursing Board
Professional and Occupational Licensure and Regulation
Total Nursing Board
Nursing Home Administration Examining Board
Professional and Occupational Licensure and Regulation
Total Nursing Home Administration Examining Board
Occupational Therapy Board
Professional and Occupational Licensure and Regulation
Total Occupational Therapy Board
Office of Prosecution Services
Prosecution Training Education and Management
Total Office of Prosecution Services
Oil and Gas Board
Management and Regulation of Oil and Gas Exploration/Development
Total Oil and Gas Board
Pardons and Paroles
Administration of Pardons and Paroles
Total Pardons and Paroles
Peace Officer Annuity and Benefit
Retirement Systems
Total Peace Officer Annuity and Benefit
210
General Fund
Variance
Actual
Budget
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
767
949
834
714
-
-
-
-
584
5,332
1,202
13
10,395
218
928
600
213
-
-
-
-
558
3,232
1,178
9
6,936
549
21
234
501
-
-
-
-
26
2,100
24
4
3,459
3
3
3
3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,004
1,004
984
984
20
20
3,644
3,644
2,888
2,888
756
756
35,127
35,127
33,286
33,286
1,841
1,841
-
-
-
-
-
-
Education Trust Fund
Variance
Actual
Budget
Earmarked Funds
Variance
Actual
Budget
Total
Variance
Actual
Budget
-
-
-
-
-
-
3,961
3,961
1,795
1,795
2,166
2,166
3,961
3,961
1,795
1,795
2,166
2,166
-
-
-
-
-
-
30
30
30
30
-
-
30
30
30
30
-
-
-
-
-
-
-
-
150
150
118
118
32
32
150
150
118
118
32
32
1,041
1,041
1,041
1,041
-
-
400
400
-
-
400
400
1,441
1,441
1,041
1,041
400
400
-
-
-
-
-
-
-
-
-
438
-
-
438
-
-
-
-
-
-
-
-
-
438
-
-
438
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,119
257
-
78
-
52,968
1,004
-
37,439
-
-
97,865
-
5,485
257
-
14
-
38,376
556
-
23,773
-
-
68,461
-
634
-
-
64
-
14,592
448
-
13,666
-
-
29,404
767
7,068
1,091
714
78
-
52,968
1,004
584
43,209
1,202
13
108,698
218
6,413
857
213
14
-
38,376
556
558
27,443
1,178
9
75,835
549
655
234
501
64
-
14,592
448
26
15,766
24
4
32,863
233
233
233
233
-
-
8,460
8,460
8,289
8,289
171
171
8,696
8,696
8,525
8,525
171
171
-
-
-
-
-
-
115
115
79
79
36
36
115
115
79
79
36
36
-
-
-
-
-
-
135
135
111
111
24
24
135
135
111
111
24
24
-
-
-
-
-
-
4,975
4,975
3,778
3,778
1,197
1,197
5,979
5,979
4,762
4,762
1,217
1,217
-
-
-
-
-
-
1,062
1,062
486
486
576
576
4,706
4,706
3,374
3,374
1,332
1,332
-
-
-
-
-
-
13,668
13,668
12,534
12,534
1,134
1,134
48,795
48,795
45,820
45,820
2,975
2,975
-
-
-
-
-
-
600
600
465
465
135
135
600
600
465
465
135
135
211
Continued on next page...
STATE OF ALABAMA
DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES
All Agencies and Appropriations, Non-GAAP, Budget Basis
(Continued from previous page)
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Peace Officer Standards and Training
Certified Law Enforcement Academy Program
Professional and Occupational Licensure and Regulation
Total Peace Officer Standards and Training
Personnel
Administrative Support Service
Total Personnel
Physical Fitness Commission
Advisory Services
Total Physical Fitness Commission
Physical Therapy Board
Professional and Occupational Licensure and Regulation
Total Physical Therapy Board
Plumbers and Gas Fitters Examining Board
Professional and Occupational Licensure and Regulation
Total Plumbers and Gas Fitters Examining Board
Polygraph Examiners
Professional and Occupational Licensure and Regulation
Total Polygraph Examiners
President Pro Tempore Senate
Legislative Operations and Support
Total President Pro Tempore Senate
Proessional Engineers Registration Board
Professional and Occupational Licensure and Regulation
Total Proessional Engineers Registration Board
Professional Geologists Licensing Board
Mineral, Energy, and Water Resources
Total Professional Geologists Licensing Board
Psychology Examiners Board
Professional and Occupational Licensure and Regulation
Total Psychology Examiners Board
Public Education Employees Health Insurance Board
Administrative Support Service
Total Public Education Employees Health Insurance Board
Public Library Service
APLS Special Grant Program
Public Library Services
Total Public Library Service
Public Livestock Market Board
Agricultural Development Services
Total Public Livestock Market Board
Real Estate Appraisers Board
Professional and Occupational Licensure and Regulation
Total Real Estate Appraisers Board
Real Estate Commission
Professional and Occupational Licensure and Regulation
Total Real Estate Commission
212
General Fund
Variance
Actual
Budget
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,791
2,791
2,071
2,071
720
720
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Education Trust Fund
Variance
Actual
Budget
Earmarked Funds
Variance
Actual
Budget
Total
Variance
Actual
Budget
375
273
648
375
273
648
-
-
-
450
4,500
4,950
383
3,670
4,053
67
830
897
825
4,773
5,598
758
3,943
4,701
67
830
897
-
-
-
-
-
-
9,685
9,685
8,812
8,812
873
873
9,685
9,685
8,812
8,812
873
873
828
828
805
805
23
23
19
19
-
-
19
19
847
847
805
805
42
42
-
-
-
-
-
-
455
455
281
281
174
174
455
455
281
281
174
174
-
-
-
-
-
-
2,287
2,287
1,471
1,471
816
816
2,287
2,287
1,471
1,471
816
816
-
-
-
-
-
-
30
30
16
16
14
14
30
30
16
16
14
14
-
-
-
-
-
-
-
-
-
-
-
-
2,791
2,791
2,071
2,071
720
720
-
-
-
-
-
-
1,678
1,678
1,208
1,208
470
470
1,678
1,678
1,208
1,208
470
470
-
-
-
-
-
-
60
60
46
46
14
14
60
60
46
46
14
14
-
-
-
-
-
-
236
236
150
150
86
86
236
236
150
150
86
86
-
-
-
-
-
-
4,110
4,110
2,973
2,973
1,137
1,137
4,110
4,110
2,973
2,973
1,137
1,137
330
7,164
7,494
299
7,033
7,332
31
131
162
-
2,933
2,933
-
2,913
2,913
-
20
20
330
10,097
10,427
299
9,946
10,245
31
151
182
-
-
-
-
-
-
4
4
1
1
3
3
4
4
1
1
3
3
-
-
-
-
-
-
1,072
1,072
834
834
238
238
1,072
1,072
834
834
238
238
-
-
-
-
-
-
4,895
4,895
3,330
3,330
1,565
1,565
4,895
4,895
3,330
3,330
1,565
1,565
213
Continued on next page...
STATE OF ALABAMA
DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES
All Agencies and Appropriations, Non-GAAP, Budget Basis
(Continued from previous page)
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Retirement Systems of Alabama
Retirement Systems
Total Retirement Systems of Alabama
Securities Commission
Regulatory Services
Total Securities Commission
Senior Services
Elderly Medication Program
Medicaid Waiver Services
Planning and Advocacy for Elderly
Total Senior Services
Sickle Cell Oversight Commission
Support - Other Educational Activities
Total Sickle Cell Oversight Commission
Social Work Examiners Board
Professional and Occupational Licensure and Regulation
Total Social Work Examiners Board
Soil and Water Conservation Commission
Professional and Occupational Licensure and Regulation
Resource Conservation and Development
Water Resource Development
Total Soil and Water Conservation Commission
Speaker of the House
Speaker of House, Office of
Total Speaker of the House
Speech Pathologists and Audiologists Examining Board
Professional and Occupational Licensure and Regulation
Total Speech Pathologists and Audiologists Examining Board
State Bar Association
Professional and Occupational Licensure and Regulation
Total State Bar Association
State Employees Insurance Board
Administrative Support Service
Fringe Benefits
Total State Employees Insurance Board
State Executive Commission - Community Services
Alabama Community Service Grant: House of Representatives
Alabama Community Service Grant: Senate
Total State Executive Commission - Community Services
State Industrial Development Authority
Industrial Development
Total State Industrial Development Authority
Supercomputer Authority
Information Technology Services
Total Supercomputer Authority
Supreme Court
Court Operations
Total Supreme Court
214
General Fund
Variance
Actual
Budget
-
-
-
-
-
-
-
-
-
-
-
-
1,993
8,360
6,218
16,571
1,927
8,101
5,620
15,648
66
259
598
923
-
-
-
-
-
-
-
-
-
-
-
-
-
2,088
2,235
4,323
-
2,042
2,177
4,219
-
46
58
104
852
852
498
498
354
354
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,546
-
5,546
5,313
-
5,313
233
-
233
-
-
-
-
-
-
-
-
-
-
-
-
10,310
10,310
8,822
8,822
1,488
1,488
Education Trust Fund
Variance
Actual
Budget
Earmarked Funds
Variance
Actual
Budget
Total
Variance
Actual
Budget
-
-
-
-
-
-
44,928
44,928
31,809
31,809
13,119
13,119
44,928
44,928
31,809
31,809
13,119
13,119
-
-
-
-
-
-
13,890
13,890
8,974
8,974
4,916
4,916
13,890
13,890
8,974
8,974
4,916
4,916
-
-
-
-
-
-
-
-
-
-
-
-
-
61,152
32,394
93,546
-
50,685
28,848
79,533
-
10,467
3,546
14,013
1,993
69,512
38,612
110,117
1,927
58,786
34,468
95,181
66
10,726
4,144
14,936
1,316
1,316
1,316
1,316
-
-
-
-
-
-
-
-
1,316
1,316
1,316
1,316
-
-
-
-
-
-
-
-
355
355
276
276
79
79
355
355
276
276
79
79
-
-
-
-
-
-
-
-
-
-
-
-
5
-
1,600
1,605
2
-
522
524
3
-
1,078
1,081
5
2,088
3,835
5,928
2
2,042
2,699
4,743
3
46
1,136
1,185
-
-
-
-
-
-
-
-
-
-
-
-
852
852
498
498
354
354
-
-
-
-
-
-
289
289
185
185
104
104
289
289
185
185
104
104
-
-
-
-
-
-
5,772
5,772
4,899
4,899
873
873
5,772
5,772
4,899
4,899
873
873
-
-
-
-
-
-
-
-
-
10,253
1,526
11,779
6,751
1,526
8,277
3,502
-
3,502
10,253
1,526
11,779
6,751
1,526
8,277
3,502
-
3,502
4,215
4,040
8,255
4,214
4,040
8,254
1
-
1
-
-
-
-
-
-
-
-
-
9,761
4,040
13,801
9,527
4,040
13,567
234
-
234
-
-
-
-
-
-
2,350
2,350
1,307
1,307
1,043
1,043
2,350
2,350
1,307
1,307
1,043
1,043
-
-
-
-
-
-
11,482
11,482
11,149
11,149
333
333
11,482
11,482
11,149
11,149
333
333
-
-
-
-
-
-
-
-
-
-
-
-
10,310
10,310
8,822
8,822
1,488
1,488
215
Continued on next page...
STATE OF ALABAMA
DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES
All Agencies and Appropriations, Non-GAAP, Budget Basis
(Continued from previous page)
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Supreme Court Law Library
Court Operations
Total Supreme Court Law Library
Surface Mining Commission
Industrial Safety and Accident Prevention
Total Surface Mining Commission
Tourism
Instructional Technical Assistance
Tourism and Travel Promotion
Total Tourism
Veterans Affairs
Administration of Veterans Affairs
Student Financial Aid
Veterans' Home
Total Veterans Affairs
Veterinarian Medical Examiners Board
Professional and Occupational Licensure and Regulation
Total Veterinarian Medical Examiners Board
Women's Commission
Employment and Social Opportunities
Total Women's Commission
TOTAL Other
TOTAL EXPENDITURES
TRANSFERS OUT:
Education Trust Fund Transfers
Building Commission
Child Abuse Board
Education Tech Fund Transfer
Finance-Telephone Revolving
Human Resources
Mental Health
Penny Trust Fund
Public School Fund Endowment
Supercomputer
TOTAL Education Trust Fund Transfers
216
General Fund
Variance
Actual
Budget
1,397
1,397
1,380
1,380
17
17
-
-
-
-
-
-
-
707
707
-
644
644
-
63
63
3,659
-
-
3,659
2,938
-
-
2,938
721
-
-
721
-
-
-
-
-
-
55
55
216,625
36
36
196,301
19
19
20,324
$ 1,249,039
$ 1,159,111
$ 89,928
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Education Trust Fund
Variance
Actual
Budget
Earmarked Funds
Variance
Actual
Budget
Total
Variance
Actual
Budget
-
-
-
-
-
-
-
-
-
-
-
-
1,397
1,397
1,380
1,380
17
17
-
-
-
-
-
-
3,882
3,882
2,379
2,379
1,503
1,503
3,882
3,882
2,379
2,379
1,503
1,503
-
-
-
-
-
-
-
-
-
86
31,539
31,625
86
24,427
24,513
-
7,112
7,112
86
32,246
32,332
86
25,071
25,157
-
7,175
7,175
2,354
30,052
-
32,406
2,129
28,464
-
30,593
225
1,588
-
1,813
4,573
-
44,423
48,996
2,629
-
27,592
30,221
1,944
-
16,831
18,775
10,586
30,052
44,423
85,061
7,696
28,464
27,592
63,752
2,890
1,588
16,831
21,309
-
-
-
-
-
-
600
600
503
503
97
97
600
600
503
503
97
97
-
-
132,815
-
-
127,384
-
-
5,431
-
-
1,375,855
-
-
1,093,210
-
-
282,645
55
55
1,725,295
36
36
1,416,895
19
19
308,400
$ 5,173,532
$ 5,151,093
$ 22,439
$17,783,038
$13,688,902
$ 4,094,136
$24,205,609
$19,999,106
$ 4,206,503
514
1,549
1,706
1,119
12,673
26,637
345
533
8,278
53,354
514
1,549
1,706
1,119
12,673
26,637
345
533
8,278
53,354
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
514
1,549
1,706
1,119
12,673
26,637
345
533
8,278
53,354
514
1,549
1,706
1,119
12,673
26,637
345
533
8,278
53,354
-
-
-
-
-
-
-
-
-
-
217
Continued on next page...
General Fund
Variance
Actual
Budget
90
1,276
36,420
18
647
81
540
4,911
20
324
40,371
2,244
13,242
162
3,831
97,897
152
103,714
81
343
1,092
419
639
203
434
1,744
201
2,040
313,136
90
1,276
36,420
18
647
81
540
4,911
20
227
40,371
2,244
13,242
162
3,831
97,897
152
103,714
81
343
1,092
419
639
203
434
1,744
201
2,040
313,039
-
-
-
-
-
-
-
-
-
97
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
97
$ 313,136
$ 313,039
$ 97
$ 1,562,175
$ 1,472,150
$ 90,025
STATE OF ALABAMA
DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES
All Agencies and Appropriations, Non-GAAP, Budget Basis
(Continued from previous page)
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
General Fund Transfers
Alabama Bureau of Investigation Cost of Evidence
Child Abuse Board
Child Health Insurance Program
Children's Policy Council
Conservation and Natural Resources
Crime Victims Compensation Commission
Educational Television Commission
Environmental Management - Operations
Environmental Management-Hazardous Substance Fund
Environmental Management-Steel / Dust Sludge
Fair Trial Tax Transfer
Finance
Forestry Commission
Forestry Emergency Forest Fire
Historical Commission
Human Resources
Local Emergency Management Agency Assistance
Mental Health
Peace Officers Annuity & Benefit
Penny Trust Fund
Pollution Control Grant
Pollution Grant
Postsecondary Department
Revenue-Ad Valorem Equalization
Surface Mining Commission
Tourism and Travel Department
Treasurer-SAFE Program
Agriculture and Conservation Development Commission
TOTAL General Fund Transfers
TOTAL TRANSFERS OUT
TOTAL EXPENDITURES AND TRANSFERS OUT
218
Education Trust Fund
Variance
Actual
Budget
Earmarked Funds
Variance
Actual
Budget
Total
Variance
Actual
Budget
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
90
1,276
36,420
18
647
81
540
4,911
20
324
40,371
2,244
13,242
162
3,831
97,897
152
103,714
81
343
1,092
419
639
203
434
1,744
201
2,040
313,136
90
1,276
36,420
18
647
81
540
4,911
20
227
40,371
2,244
13,242
162
3,831
97,897
152
103,714
81
343
1,092
419
639
203
434
1,744
201
2,040
313,039
-
-
-
-
-
-
-
-
-
97
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
97
$ 53,354
$ 53,354
$ -
$ - $ -
$ -
$ 366,490
$ 366,393
$ 97
$ 5,226,886
$ 5,204,447
$ 22,439
$17,783,038
$13,688,902
$ 4,094,136
$24,572,099
$20,365,499
$ 4,206,600
219
STATE OF ALABAMA
SCHEDULE OF REVENUES BY PRINCIPAL SOURCES
Governmental Funds in State Treasury
Cash Basis, Transfers Excluded
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
TAXES
General Sales Tax (4% on gross retail sale of merchandise)
General Use Tax
Income Tax (2% to 5% personal income, 6.5% net corporate income)
Property Tax Relief (represents portion of Income Tax used to offset
property taxes lost in certain funds due to homestead exemptions)
General Property Tax (6 1/2 mills for state on varying
rates not over 30%)
Gasoline Taxes (16¢ per gallon; 3¢ aviation; 1¢ jet)
Utilities Tax (6% telephone, 4% other)
Insurance Premium Tax (1% to 6%)
Liquor & Wine Tax (totals 56%, collected by ABC stores)
Tobacco & Cigarette Taxes (21.25 mills per cigarette; varying
amounts on cigars, smoking tobacco, snuff, etc.)
Corporation Taxes (privilege, 25¢ to $1.75 per $1,000 net worth;
permit, entrance fees for filing)
State Beer Tax (5¢ per 12 oz.)
Public Utilities (2.2%)
Motor Fuel Tax (diesel 17¢ per gallon)
Tennessee Valley Authority (payments in-lieu of all state taxes)
Leasing / Renting Tangible Personal Property - (4% most items,
1.5% vehicles, 2% garments)
Production Privilege Tax (Oil & Gas Severance at amounts varying 2-8%)
Financial Institutions Excise Tax (6.5% of net income of
banks and other financial institutions)
Documentary Filing Taxes (auto title, deed, mortgage, securities, etc)
Coal Severance Tax (33.5¢ per ton)
Forestry Severance Tax
Inheritance Tax (amount of federal credit)
Contractors Gross Receipts Tax (5% of gross receipts)
Lodgings Tax (4% or 5% of charge)
Hydroelectric Companies (tax on 2/5 mill per
kilowatt hour and 2.2% per dollar gross receipts)
Lubricating Oil Tax (6¢ per gallon)
Pari-mutuel Betting (1 or 2% on pari-mutuel pools)
Court Cost Taxes
Medicaid Taxes
Cellular Telephones (6%)
Ground Materials Severance Tax
Miscellaneous Taxes
TOTAL TAXES
220
$
1,857,375
245,780
2,949,581
9.8%
1.3%
15.5%
46,976
316,705
410,158
436,765
256,786
104,802
137,737
39,064
55,368
143,742
137,234
122,653
62,235
81,969
18,874
55,730
6,445
4,964
96
33,724
43,312
1,727
1,823
2,104
35,200
269,627
105,918
831
18,603
8,003,908
0.2%
1.7%
2.1%
2.4%
1.3%
0.5%
0.7%
0.2%
0.3%
0.8%
0.7%
0.6%
0.3%
0.4%
0.1%
0.3%
0.0%
0.0%
0.0%
0.2%
0.2%
0.0%
0.0%
0.0%
0.2%
1.4%
0.6%
0.0%
0.1%
41.9%
LICENSES AND FEES
Conservation Licenses (fishing, hunting, boat registration, etc)
Drivers Licenses and Fees
Petroleum Products Inspection Fees (.00025¢ to 15¢ per gallon)
Agricultural Licenses and Fees
Wholesale Oil Company License
Motor Vehicle License ($23.00 on auto; up to $845.00
on trucks and up to $210.00 on buses)
Privilege License (fees for privilege of operating
stores, factories, professions, businesses, etc)
Court Fees
Alcoholic Beverage Licenses
Insurance Corporation Licenses and Fees
Miscellaneous License and Fees
TOTAL LICENSES AND FEES
FINES AND FORFEITS
Court Fines and Forfeits
Tobacco Settlement
Miscellaneous Fines and Forfeits
TOTAL FINES AND FORFEITS
INVESTMENT INCOME
FEDERAL REVENUES
OTHER REVENUES
Rents and Royalties
Reimbursements
Sales of Property or Services
Contributions
Intragovernmental Services
Local Revenues
Disproportionate Hospital Receipts (Medicaid)
Miscellaneous Revenues
TOTAL OTHER REVENUES
26,149
50,954
60,011
11,091
3,677
157,239
76,519
80,346
2,489
1,369
153,648
623,492
32,852
97,266
15,803
145,921
63,001
0.1%
0.3%
0.3%
0.1%
0.0%
0.9%
0.4%
0.4%
0.0%
0.0%
0.8%
3.3%
0.2%
0.5%
0.1%
0.8%
0.3%
9,309,838
48.6%
154,071
63,536
50,757
102,576
41,541
34,871
434,250
98,046
979,648
0.8%
0.3%
0.3%
0.5%
0.2%
0.2%
2.3%
0.5%
5.1%
TOTAL REVENUES
$19,125,808
100.0%
221
STATE OF ALABAMA
SCHEDULE OF REVENUES BY PRINCIPAL SOURCES AND DISTRIBUTIONS OF REVENUES
Governmental Funds in State Treasury
Cash Basis, Transfers Excluded
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Human
Resources
Funds
$
61,425
500
-
6,938
47,274
-
-
-
37,592
3,092
-
11,074
-
-
-
-
-
-
-
-
-
-
5,038
-
-
-
-
-
-
-
-
12
172,945
-
-
-
-
-
-
-
-
-
-
445
445
-
-
-
0
-
1,647,118
-
9,021
1,829,529
$
General
Fund
$
75,637
1,828
-
19,224
119,695
-
-
219,943
52,401
119,056
1,545
16,610
21,706
-
-
62,235
64,440
10,471
55,730
-
-
96
-
31,087
-
608
2,104
10,039
-
68,301
-
4,403
957,159
-
33,121
-
-
3,677
42,278
11,121
57,070
2,489
598
3,450
153,804
22,155
-
2,025
24,180
23,453
-
-
1,044
1,159,640
$
Public
School
Fund
Education
Trust Fund
Alabama
Trust Fund
$
0
-
-
20,814
143,848
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
89
164,751
-
-
-
-
-
-
-
-
-
-
-
0
-
-
-
-
-
-
-
4,203
168,954
$
$
1,566,190
237,871
2,896,869
-
-
-
421,752
31,041
-
-
-
22,147
-
-
-
-
-
-
-
-
-
-
-
-
725
-
-
-
-
36,400
-
-
5,212,995
-
-
-
-
-
-
2
-
-
-
44
46
-
-
-
0
-
-
-
238
5,213,279
$
$
0
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0
-
-
-
-
-
-
-
-
-
-
-
0
-
-
-
0
13,285
-
-
123,713
136,998
$
TAXES
General Sales Tax
General Use Tax
Income Tax
Property Tax Relief
General Property Tax
Gasoline Taxes
Utilities Tax
Insurance Premium Tax
Liquor & Wine Tax
Tobacco & Cigarette Taxes
Corporation Taxes
State Beer Tax
Public Utilities
Motor Fuel Tax
Tennessee Valley Authority
Leasing/Renting Personal Property
Production Privilege Tax
Financial Institutions Excise Tax
Documentary Filing Taxes
Coal Severance Tax
Forestry Severance Tax
Inheritance Tax
Contractors Gross Receipts Tax
Lodgings Tax
Hydroelectric Companies
Lubricating Oil Tax
Pari-mutuel Betting
Court Cost Taxes
Medicaid Provider Taxes
Cellular Telephone Tax
Ground Materials Severance Tax
Miscellaneous Taxes
TOTAL TAXES
LICENSES AND FEES
Conservation Licenses
Drivers Licenses and Fees
Petroleum Products Inspection Fee
Agricultural License and Fees
Wholesale Oil Company License
Motor Vehicle License
Privilege License
Court Fees
Alcoholic Beverage Licenses
Insurance Corp Licenses and Fees
Miscellaneous License and Fees
TOTAL LICENSES AND FEES
FINES AND FORFEITS
Court Fines and Forfeits
Tobacco Settlement
Miscellaneous Fines and Forfeits
TOTAL FINES AND FORFEITS
INVESTMENT INCOME
FEDERAL REVENUES
Disproportionate Public Hospital
Miscellaneous Revenues
TOTAL REVENUES
Total
Revenues
$
1,857,375
245,780
2,949,581
46,976
316,705
410,158
436,765
256,786
104,802
137,737
39,064
55,368
143,742
137,234
122,653
62,235
81,969
18,874
55,730
6,445
4,964
96
33,724
43,312
1,727
1,823
2,104
35,200
269,627
105,918
831
18,603
8,003,908
26,149
50,954
60,011
11,091
3,677
157,239
76,519
80,346
2,489
1,369
153,648
623,492
$
32,852
97,266
15,803
145,921
63,001
9,309,838
434,250
545,398
19,125,808
Admin-
istrative
Expense
$
40,574
4,333
52,712
-
5,888
12,322
413
-
-
475
-
-
-
4,642
-
-
-
142
-
-
314
-
50
23
1
14
-
-
347
-
-
89
122,339
-
-
-
-
-
1,676
1,623
-
-
-
358
3,657
-
-
-
-
-
712
-
5,756
132,464
$
Net
Revenues
$
1,816,801
241,447
2,896,869
46,976
310,817
397,836
436,352
256,786
104,802
137,262
39,064
55,368
143,742
132,592
122,653
62,235
81,969
18,732
55,730
6,445
4,650
96
33,674
43,289
1,726
1,809
2,104
35,200
269,280
105,918
831
18,514
7,881,569
26,149
50,954
60,011
11,091
3,677
155,563
74,896
80,346
2,489
1,369
153,290
619,835
$
32,852
97,266
15,803
145,921
63,001
9,309,126
434,250
539,642
18,993,344
222
Distributed
To Local
Government
Debt
Service
Funds
4,674
$
-
-
-
-
176,979
-
-
-
754
36,930
5,537
-
2,353
101,802
-
17,529
8,261
-
3,846
-
-
-
1,835
-
661
-
-
-
-
831
234
362,226
-
775
9,565
-
-
20,514
-
-
-
-
-
30,854
-
-
-
-
19,991
2,347
-
-
415,418
$
$
103,875
-
-
-
-
-
-
-
-
2,300
-
-
-
-
20,851
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,217
-
-
128,243
-
-
-
-
-
-
-
-
-
-
-
0
-
-
-
0
151
-
-
2,446
130,840
$
Medicaid
$
0
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
269,280
-
-
-
269,280
-
-
-
-
-
-
-
-
-
-
-
0
-
-
3,369
3,369
31
3,946,493
434,250
95,791
4,749,214
$
Transportation
Department
$
0
-
-
-
-
216,356
-
-
-
-
-
-
-
130,239
-
-
-
-
-
-
-
-
-
-
-
540
-
-
-
-
-
36
347,171
-
-
47,483
-
-
88,280
3,422
-
-
-
1,277
140,462
-
-
-
0
1,683
990,061
-
24,311
1,503,688
$
Health
General &
Mental
0
$
-
-
-
-
-
14,600
4,525
14,809
8,950
-
-
122,036
-
-
-
-
-
-
-
-
-
28,636
-
1,001
-
-
-
-
-
-
-
194,557
-
-
-
-
-
-
2,914
153
-
-
27,675
30,742
-
-
-
0
-
422,818
-
66,138
714,255
$
Education
Department
Economic &
Community
Affairs
0
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,458
-
-
-
-
3,458
-
-
-
-
-
-
948
-
-
-
-
948
-
-
4
4
2
1,231,465
-
9,970
1,245,847
$
0
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0
-
-
-
-
-
-
-
-
-
-
-
0
1,957
-
-
1,957
11
330,244
-
3,185
335,397
$
Other
$
5,000
1,248
-
-
-
4,501
-
1,277
-
3,110
589
-
-
-
-
-
-
-
-
2,599
4,650
-
-
10,367
-
-
-
21,703
-
-
-
13,740
68,784
26,149
17,058
2,963
11,091
-
4,491
56,489
23,123
-
771
120,399
262,534
8,740
97,266
10,405
116,411
4,394
738,580
-
199,582
1,390,285
$
Distribution
of Other Amounts
Conservation Dept.
Conservation Dept.
Conservation 3.6M
Insurance Dept
State Parks
Secretary of State
Forestry
Tourism
Fair Trial Fd 18.6M
ADEM 8.4M; Indus Rel 5.3M
Conservation
Public Safety
Agriculture
Agriculture
Corrections 3.6M
Prof & Occup Bds 26 M
AOC 11M; DPS 2.8M; DFS 7.1M
Insurance Dept
ADEM 62M; PSC 16M; Bank 15M
DFS 2.5M; DOC 1.9
21st Century Fund
DPS 2.4M; AG 2.4M
Research Alliance 3M
DOC 197M; Univ 92M; DIR 70M
Cons 54M; Corr 19M; ADEM 21M
223
224
Nonmajor Enterprise Funds
Nonmajor Enterprise Funds are used to account for the operations of State agencies that provide goods and services to the
public in a manner similar to private business enterprises. The cost of providing the goods or services are recovered primarily
through user charges.
Alabama Health Insurance Plan
Provides health insurance coverage for citizens who have lost their group health insurance.
Motor Sports Hall of Fame
Operates a public exhibit displaying the history of automotive racing and other motor sports.
Corrections Canteen
Accounts for the activity of the canteen funds of the Department of Corrections.
National Guard Canteen
Accounts for the activity of the canteen funds of the National Guard.
Other Enterprise Funds
Are aggregated for reporting purposes and account for other small enterprise funds operated by the State, including the
Guaranteed Student Loan Fund and Military Billeting.
225
STATE OF ALABAMA
COMBINING STATEMENT OF NET ASSETS
Nonmajor Enterprise Funds
September 30, 2010
(Amounts in Thousands)
ASSETS
Current Assets
Cash and Cash Equivalents
Investments, Short-term
Accounts Receivable
Securities Lending Collateral
Inventory
Other Current Assets
Total Current Assets
Noncurrent Assets
Capital Assets, Net of Accumulated Depreciation
Capital Assets Not Depreciated
Total Noncurrent Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Salaries Payable
Due to Other Funds
Due to Component Units
Accounts Payable
Due to Other Governments
Claims Payable
Unearned Revenue
Securities Lending Obligation
Total Current Liabilities
Noncurrent Liabilities
Compensated Absences
Other Post-employment Benefits
Notes and Capital Leases Payable
Total Noncurent Liabilities
Total Liabilities
NET ASSETS
Invested in Capital Assets, Net of Related Debt
Unrestricted
TOTAL NET ASSETS
Alabama
Health
Insurance
Plan
Motor
Sports
Hall of
Fame
Corrections
Canteen
National
Guard
Canteen
$ 7,559
-
44
-
-
300
7,903
$ 131
104
-
-
-
-
235
$ 815
-
3
-
648
-
1,466
$ 2,655
-
-
-
174
-
2,829
5
-
5
7,908
-
-
25
23
-
3,700
401
-
4,149
-
-
-
0
4,149
1,532
2,630
4,162
4,397
2
-
-
16
-
-
-
-
18
9
12
1,825
1,846
1,864
-
-
0
1,466
-
641
-
57
-
-
-
-
698
-
-
-
0
698
1,105
-
1,105
3,934
2
-
-
4
-
-
-
-
6
-
-
-
0
6
5
3,754
$ 3,759
2,337
196
$ 2,533
-
768
$ 768
1,105
2,823
$ 3,928
226
Other
Nonmajor
Enterprise
Funds
$ 244
-
-
11
-
-
255
64
81
$ 145
24
-
1
42
3
-
-
11
81
10
83
-
93
64
-
64
319
174
Totals
$ 11,404
104
47
11
822
300
12,688
2,706
2,630
5,336
18,024
28
641
26
142
3
3,700
401
11
4,952
19
95
1,825
1,939
6,891
3,511
7,622
$ 11,133
227
STATE OF ALABAMA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS
Nonmajor Enterprise Funds
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Alabama
Health
Insurance
Plan
Motor
Sports
Hall of
Fame
Corrections
Canteen
National
Guard
Canteen
OPERATING REVENUES
Charges for Goods and Services
Premiums and Contributions
Rents and Leases
Total Operating Revenues
OPERATING EXPENSES
Salaries, Wages, and Benefits
Utilities and Communications
Professional Services
Supplies, Materials, and Operating Expenses
Depreciation
Claims and Benefits
Other
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES)
Taxes
Grants
Investment Income
Other Nonoperating Revenues
Interest Expense
Total Nonoperating Revenues (Expenses)
Income (Loss) Before Contributions and Transfers
Transfers Out
Increase (Decrease) in Net Assets
Total Net Assets, October 1, 2009, as Restated
Total Net Assets, September 30, 2010
$ 0
14,471
-
14,471
$ 0
-
199
199
$ 22,061
-
-
22,061
$ 11,161
-
-
11,161
-
-
360
-
6
21,368
-
21,734
(7,263)
3,901
-
19
-
-
3,920
(3,343)
-
(3,343)
7,102
58
10
4
55
172
-
8
307
-
-
-
12,507
-
-
-
12,507
(108)
9,554
-
-
3
120
(91)
32
(76)
-
(76)
2,609
-
-
-
69
-
69
9,623
(9,593)
30
738
95
-
-
10,254
66
-
-
10,415
746
-
-
25
5
-
30
776
(92)
684
3,244
$ 3,759
$ 2,533
$ 768
$ 3,928
228
Other
Nonmajor
Enterprise
Funds
(164)
331
190
8
36
20
-
1
586
$ 0
-
422
422
$ 145
-
119
-
3
-
122
(42)
(2)
(44)
189
Totals
$ 33,222
14,471
621
48,314
484
200
372
22,852
264
21,368
9
45,549
2,765
3,901
119
47
197
(91)
4,173
6,938
(9,687)
(2,749)
13,882
$ 11,133
229
STATE OF ALABAMA
COMBINING STATEMENT OF CASH FLOWS
Nonmajor Enterprise Funds
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Cash Flows from Operating Activities:
Receipts from Customer & User Charges
Receipts from Interfund Services
Receipts from Other Operating Activities
Payments for Goods Held for Resale
Payments for Other Goods & Services
Payments for Employees Services
Payments for Interfund Services
Net Cash Provided by (Used In) Operating Activities
Cash Flows from Noncapital Financing Activities:
Transfers to Other Funds for Noncapital Financing
Net Cash Provided By (Used In)
Noncapital Financing Activities
Cash Flows From Capital & Related Financing Activities:
Receipts from Sale of Capital Assets & Insurance Proceeds
Payments to Acquire, Construct, & Improve Capital Assets
Principal Paid on Revenue Bonds & Other Capital Debt
Interest Paid on Revenue Bonds & Other Capital Debt
Net Cash Provided by (Used in)
Capital and Related Financing Activities
Cash Flows From Investing Activities
Receipts from Interest & Dividends on Investments & Loans
Purchase of Investments
Net Cash Provided By (Used In) Investing Activities
Net Increase (Decrease) In Cash and Cash Equivalents
Cash Balance as Restated, October 1, 2009
Cash Balance, September 30, 2010
Cash and Cash Equivalents,
as Reported on Balance Sheet
Alabama
Health
Insurance
Plan
Motor
Sports
Hall of
Fame
$ 18,380
-
-
(455)
(21,170)
-
-
(3,245)
$ 200
-
120
-
(77)
(54)
-
189
-
0
-
-
-
-
0
19
-
19
(3,226)
10,785
7,559
-
0
101
-
(71)
(91)
(61)
3
(104)
(101)
27
104
131
Corrections
Canteen
$ 22,072
-
69
(12,512)
-
-
-
9,629
(9,595)
(9,595)
-
-
-
-
0
-
-
0
34
781
815
National
Guard
Canteen
$ 11,165
-
-
(10,162)
(85)
(94)
-
824
(92)
(92)
-
(490)
-
-
(490)
25
-
25
267
2,388
2,655
$ 7,559
$ 131
$ 815
$ 2,655
230
Other
Nonmajor
Enterprise
Funds
(2)
(2)
$ 421
8
120
-
(205)
(317)
(5)
22
$ 244
-
-
-
-
-
-
0
0
20
224
244
Totals
$ 52,238
8
309
(23,129)
(21,537)
(465)
(5)
7,419
(9,689)
(9,689)
101
(490)
(71)
(91)
(551)
47
(104)
(57)
(2,878)
14,282
11,404
$ 11,404
Continued on next page...
231
STATE OF ALABAMA
COMBINING STATEMENT OF CASH FLOWS (Continued from Previous Page)
Nonmajor Enterprise Funds
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Alabama
Health
Insurance
Plan
Motor
Sports
Hall of
Fame
Corrections
Canteen
National
Guard
Canteen
Reconciliation of Operating Income (Loss) to Net Cash
Provided (Used) by Operating Activities:
Operating Income (Loss)
Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided by Operating Activities:
Due from Other Funds
Accounts Receivable
Inventory
Salaries Payable
Due to Other Funds
Accounts Payable
Claims Payable
Unearned Revenue
Compensated Absences
Other Post-employment Benefits
Depreciation
Nonoperating Revenues
Total Adjustments
Net Cash Provided (Used) by Operating Activities
Noncash Investing, Capital, and Financing Activities
Increase (Decrease):
Disposals, Write-offs, and Other Reductions to Capital Asset
$ (7,263)
$ (108)
$ 9,554
$ 746
-
(8)
-
-
(96)
6
197
12
-
-
6
3,901
4,018
-
-
-
-
-
1
-
-
-
4
172
120
297
-
12
(19)
-
-
13
-
-
-
-
-
69
75
-
5
4
-
-
3
-
-
-
-
66
-
78
$ (3,245)
$ 189
$ 9,629
$ 824
-
(101)
-
-
232
Other
Nonmajor
Enterprise
Funds
8
-
-
(8)
1
25
-
-
(1)
20
20
121
186
$ (164)
$ 22
-
Totals
$ 2,765
8
9
(15)
(8)
(95)
48
197
12
(1)
24
264
4,211
4,654
$ 7,419
(101)
233
234
Internal Service Funds
Internal Service Funds account for the operation of State organizations which provide goods and services to other State
agencies on a cost-reimbursement basis.
Telecommunications Fund
Provides for the coordination and promotion of efficiency in the acquisition, operation and maintenance of telecommunications
and computer equipment, services, systems, and networks used by state agencies.
Service Division
Accounts for various services provided to State agencies including janitorial services, motor pool, mail services, and building
maintenance.
Correctional Industries
Accounts for the manufacturing activities of the State's correctional facilities.
Building Renovation Finance Authority
Accounts for the rental and maintenance of the buildings in the State Capitol Complex.
Risk Management
Accounts for resources used to provide insurance coverage for State buildings, school buildings, and their contents. Risk
Management also insures State employees against work related injuries as well as employment-related liability claims.
Other Internal Service Funds
Account for other small internal service funds operated by the Finance and Military Departments.
235
STATE OF ALABAMA
COMBINING STATEMENT OF NET ASSETS
Internal Service Funds
September 30, 2010
(Amounts in Thousands)
Telecom-
munications
Fund
Service
Division
Correctional
Industries
Building
Renovation
Finance
Authority
Risk
Management
ASSETS
Current Assets
Cash and Cash Equivalents
Investments, Short-term
Due from Other Funds
Due from Component Units
Accounts Receivable
Interest and Dividends Receivable
Securities Lending Collateral
Inventory
Other Current Assets
Total Current Assets
Noncurrent Assets
Investments, Long-term
Due From Other Funds, Noncurrent
Due From Component Unit, Noncurrent
Other Noncurrent Assets
Capital Assets, Net of Accumulated Depreciation
Capital Assets Not Depreciated
Total Noncurrent Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Warrants Payable
Salaries Payable
Due to Other Funds
Due to Component Units
Accounts Payable
Due to Other Governments
Claims Payable
Compensated Absences
Securities Lending Obligation
Notes and Capital Leases Payable
Revenue Bonds Payable
Total Current Liabilities
Noncurrent Liabilities
Claims Payable
Compensated Absences
Other Post-employment Benefits
Notes and Capital Leases Payable
Revenue Bonds Payable
Other Long-term Liabilities
Total Noncurent Liabilities
Total Liabilities
NET ASSETS
Invested in Capital Assets, Net of Related Debt
Restricted for:
Capital Projects
Unrestricted
TOTAL NET ASSETS
$ 7,810
-
9,047
282
761
-
336
-
-
18,236
$ 3,241
-
1,563
143
264
-
139
820
-
6,170
$ 4,564
-
2,372
148
-
-
197
8,606
-
15,887
$ 20,166
-
1,283
-
3
-
574
-
-
22,026
$ 10,067
57,827
1,125
13
1,029
142
192
-
10,629
81,024
-
429
-
-
2,403
-
2,832
21,068
2
1,289
1,018
22
4,235
-
-
2
336
-
-
6,904
-
2,552
2,047
-
-
779
5,378
12,282
-
-
-
-
2,459
-
2,459
8,629
-
101
113
1
1,404
-
-
-
139
326
-
2,084
-
94
292
1,017
-
-
1,403
3,487
-
-
-
-
2,232
620
2,852
18,739
3
424
71
-
1,160
3
-
-
197
-
-
1,858
-
804
1,140
-
-
-
1,944
3,802
-
-
-
794
37,260
24,475
62,529
84,555
7
272
12
-
628
38
-
7
574
-
7,655
9,193
-
402
708
-
66,079
-
67,189
76,382
85,249
8,857
1,312
-
162
5,139
100,719
181,743
310
352
130
305
228
-
10,613
-
192
-
-
12,130
48,669
412
564
-
-
-
49,645
61,775
2,403
1,116
2,852
(5,167)
5,301
-
6,383
$ 8,786
-
4,026
$ 5,142
-
12,085
$ 14,937
6,924
6,416
$ 8,173
-
114,667
$ 119,968
236
Other
Internal
Service
Funds
-
-
-
-
32
-
32
1,512
$ 1,419
-
-
-
-
-
61
-
-
1,480
-
304
$ 336
-
202
23
-
29
-
-
-
61
-
-
315
-
439
422
-
-
-
861
1,176
32
Totals
$ 47,267
57,827
15,390
586
2,057
142
1,499
9,426
10,629
144,823
85,249
9,286
1,312
794
44,548
30,234
171,423
316,246
322
2,640
1,367
328
7,684
41
10,613
9
1,499
326
7,655
32,484
48,669
4,703
5,173
1,017
66,079
779
126,420
158,904
6,537
6,924
143,881
$ 157,342
237
STATE OF ALABAMA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS
Internal Service Funds
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Building
Renovation
Telecom-
munications
Fund
Service
Division
Correctional
Industries
Finance
Authority
Risk
Management
OPERATING REVENUES
Charges for Goods and Services
Premiums and Contributions
Rents and Leases
Total Operating Revenues
OPERATING EXPENSES
Salaries, Wages, and Benefits
Utilities and Communications
Professional Services
Supplies, Materials, and Operating Expenses
Interest
Depreciation
Claims and Benefits
Other
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES)
Grants
Investment Income
Other Nonoperating Revenues
Interest Expense
Other Nonoperating Expenses
Total Nonoperating Revenues (Expenses)
Income (Loss) Before Contributions and Transfers
Transfers In
Transfers Out
Increase (Decrease) in Net Assets
Total Net Assets, October 1, 2009, as Restated
Total Net Assets, September 30, 2010
$ 42,661
-
-
42,661
$ 10,630
-
-
10,630
$ 11,121
-
-
11,121
$ 854
-
18,346
19,200
$ 315
52,048
-
52,363
16,065
17,663
3,598
4,335
-
1,458
-
3,240
46,359
(3,698)
33
-
196
-
-
229
(3,469)
1,935
(60)
(1,594)
10,380
1,304
71
278
7,251
-
794
-
1,493
11,191
(561)
5
-
103
(102)
-
6
(555)
15
(17)
(557)
5,699
5,528
654
290
8,382
-
485
-
747
16,086
(4,965)
19
-
71
-
(126)
(36)
(5,001)
4,446
(37)
(592)
15,529
3,639
3,581
1,522
435
3,231
3,008
-
1,216
16,632
2,568
11
18
6
-
(19)
16
2,584
3,994
(27)
6,551
1,622
4,171
120
5,660
20,541
-
83
17,674
64
48,313
4,050
10
5,033
34
-
-
5,077
9,127
-
(14)
9,113
110,855
$ 8,786
$ 5,142
$ 14,937
$ 8,173
$ 119,968
238
Other
Internal
Service
Funds
(341)
2,911
31
368
49
-
16
-
153
3,528
$ 3,187
-
-
3,187
$ 336
6
-
2
-
-
8
(333)
-
(9)
(342)
678
Totals
$ 68,768
52,048
18,346
139,162
33,618
22,120
11,716
40,993
3,231
5,844
17,674
6,913
142,109
(2,947)
84
5,051
412
(102)
(145)
5,300
2,353
10,390
(164)
12,579
144,763
$ 157,342
239
STATE OF ALABAMA
COMBINING STATEMENT OF CASH FLOWS
Internal Service Funds
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Telecom-
munications
Fund
$ 1,390
41,334
3,813
(102)
(26,985)
(15,547)
(167)
(1,635)
(4,611)
-
(2,510)
Cash Flows from Operating Activities:
Receipts from Customer & User Charges
Receipts from Interfund Services
Receipts from Other Operating Activities
Payments for Goods Held for Resale
Payments for Other Goods & Services
Payments for Employees Services
Payments for Taxes, Fines, Penalties, & Similar Fees
Payments for Interfund Services
Payments for Other Operating Activities
Payments for Claims
Net Cash Provided by (Used In) Operating Activities
Cash Flows from Noncapital Financing Activities:
Transfers from Other Funds for Noncapital Financing
Transfers to Other Funds for Noncapital Financing
Net Cash Provided By (Used In)
Noncapital Financing Activities
Cash Flows From Capital & Related Financing Activities:
Proceeds from Revenue Bonds & Other Capital Debt
Receipts from Sale of Capital Assets & Insurance Proceeds
Payments to Acquire, Construct, & Improve Capital Assets
Principal Paid on Revenue Bonds & Other Capital Debt
Interest Paid on Revenue Bonds & Other Capital Debt
Net Cash Provided by (Used in)
Capital and Related Financing Activities
Cash Flows From Investing Activities
Receipts from Sales & Maturities of Investments
Receipts from Interest & Dividends on Investments & Loans
Purchase of Investments
Net Cash Provided By (Used In) Investing Activities
Net Increase (Decrease) In Cash and Cash Equivalents
Cash Balance as Restated, October 1, 2009
Cash Balance, September 30, 2010
Add: Warrants Payable
Cash and Cash Equivalents,
as Reported on Balance Sheet
1,929
(53)
1,876
-
194
(889)
-
-
(695)
-
-
-
0
(1,329)
9,137
7,808
2
240
$ 7,810
Service
Division
Correctional
Industries
$ 1,027
9,004
10
(6,798)
(1,291)
(1,199)
-
(448)
-
-
305
$ 2,108
8,373
6
(7,063)
(1,759)
(5,496)
(1)
(562)
(186)
-
(4,580)
Building
Renovation
Finance
Authority
$ 18
18,767
161
-
(6,482)
(3,482)
-
(537)
(21)
-
8,424
Risk
Management
$ 31,207
25,805
315
-
(25,723)
(3,927)
-
(1,905)
(51)
(20,630)
5,091
-
(8)
(8)
-
94
(7)
(251)
(101)
(265)
-
-
-
0
32
3,209
3,241
-
3,706
(37)
3,669
-
24
(245)
-
-
(221)
-
-
-
0
(1,132)
5,693
4,561
3
4,083
(27)
4,056
29,125
2
(284)
(6,889)
(31,152)
(9,198)
-
18
-
18
3,300
16,859
20,159
7
-
(14)
(14)
-
-
(2,745)
-
-
(2,745)
176,703
2,870
(214,634)
(35,061)
(32,729)
42,486
9,757
310
$ 3,241
$ 4,564
$ 20,166
$ 10,067
Other
Internal
Service
Funds
-
(9)
(9)
$ 2
3,185
2
-
(214)
(2,788)
-
(356)
(3)
-
(172)
$ 1,419
-
1
(26)
-
-
1,419
-
(25)
-
-
-
0
(206)
1,625
Totals
$ 35,752
106,468
4,307
(13,963)
(62,454)
(32,439)
(168)
(5,443)
(4,872)
(20,630)
6,558
9,718
(148)
9,570
29,125
315
(4,196)
(7,140)
(31,253)
(13,149)
176,703
2,888
(214,634)
(35,043)
(32,064)
79,009
46,945
322
$ 47,267
Continued on next page...
241
STATE OF ALABAMA
COMBINING STATEMENT OF CASH FLOWS (Continued from Previous Page)
Internal Service Funds
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Telecom-
munications
Fund
Service
Division
Correctional
Industries
Building
Renovation
Finance
Authority
Risk
Management
$ (3,698)
$ (561)
$ (4,965)
$ 2,568
$ 4,050
(735)
747
-
-
-
(23)
(1,198)
211
(167)
-
349
-
-
(19)
527
-
-
1,458
38
-
1,188
(262)
(38)
499
-
-
4
98
(339)
-
-
-
-
-
17
79
-
-
794
15
(1)
866
(523)
-
676
-
-
(58)
(192)
(98)
-
-
-
-
-
(183)
257
-
-
485
21
-
385
(405)
9
-
-
116
(24)
(13)
(235)
-
-
-
-
-
(14)
184
-
3,231
3,008
18
(19)
5,856
628
503
-
(296)
-
42
298
(176)
-
(126)
-
(381)
192
34
157
56
9
83
18
-
1,041
Reconciliation of Operating Income (Loss) to Net Cash
Provided (Used) by Operating Activities:
Operating Income (Loss)
Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided by Operating Activities:
Due from Other Funds
Accounts Receivable
Inventory
Other Assets
Capital Assets
Salaries Payable
Due to Other Funds
Accounts Payable
Due to Other Governments
Claims Payable
Amounts Held Pending Distribution
Unearned Revenue
Funds Held in Escrow
Compensated Absences
Other Post-employment Benefits
Investment Income
Operating Interest Expense
Depreciation
Nonoperating Revenues
Nonoperating Expenses
Total Adjustments
Net Cash Provided (Used) by Operating Activities
Noncash Investing, Capital, and Financing Activities
Increase (Decrease):
Transfers and Donations of Capital Assets
Capital Assets Acquired by Capital Lease or Other Debt
Disposals, Write-offs, and Other Reductions to Capital Asset
Revenue Bond Amortizations and Other Debt Adjustments
Interest Accruals and Other Adjustments
Unrealized Gains (Losses) in Investment Fair Value
Transfers In (Out)
$ (2,510)
$ 305
$ (4,580)
$ 8,424
$ 5,091
4,779
-
(3,506)
-
-
-
1
589
1,343
(175)
-
-
-
(6)
90
-
(1,121)
-
-
-
(740)
244
-
(216)
(1,091)
-
-
89
203
-
(210)
-
(524)
(1,605)
-
242
Other
Internal
Service
Funds
-
-
-
-
-
(7)
6
24
-
-
-
-
-
21
102
-
-
16
7
-
169
$ (341)
$ (172)
1
-
(20)
-
-
-
-
Totals
$ (2,947)
(1,297)
1,221
1,175
(296)
116
(66)
(1,001)
(613)
(167)
(126)
349
(381)
192
(144)
1,306
56
3,240
5,844
117
(20)
9,505
$ 6,558
5,906
1,343
(5,248)
(1,091)
(524)
(1,605)
(656)
243
244
Pension and Other Employee Benefit Trust Funds
Pension and Other Employee Benefit Trust Funds account for the resources held in trust for members and beneficiaries of
retirement plans and other employee benefit plans administered by the State.
Employees' Retirement System
Accounts for the accumulation of resources for pension benefit payments to State employees, State police, and employees of
other eligible governmental organizations such as cities and counties within the State.
Teachers' Retirement System
Accounts for the accumulation of resources for pension benefit payments to employees of state-supported educational
institutions.
Judicial Retirement Fund
Accounts for the accumulation of resources for pension benefit payments to judges of the State's Supreme Court, Court of Civil
Appeals, Court of Criminal Appeals, and Circuit Court.
Peace Officers' Annuity and Benefits
Provides pension benefits to State and local peace officers.
State Port Authority Hourly Plan
Is a retirement fund for certain hourly employees of the Alabama State Port Authority who are not members of the State
Employees' Retirement System.
State Port Authority Railway Plan
Is a retirement fund for certain employees of the Alabama State Port Authority who are not members of the State Employees'
Retirement System.
Clerks and Registers Supernumerary
Is a pension plan for certain employees of the court system.
Flexible Employees' Benefits Board
Provides a number of benefit programs to State employees such as a cafeteria plan, health care reimbursement accounts, and
dependent care reimbursement accounts.
Employee Savings Plans
Accounts for resources contributed by public employees for deferred compensation plans and individual retirement accounts.
Retired Education Employees' Health Care Trust
Provides post-employment health insurance benefits for retired employees of school systems and institutions of higher
education.
Retired State Employees' Health Care Trust
Provides post-employment health insurance benefits for retired State employees.
245
STATE OF ALABAMA
COMBINING STATEMENT OF PLAN NET ASSETS
Pension and Other Employee Benefit Trust Funds
September 30, 2010
(Amounts in Thousands)
Employees'
Retirement
System
Teachers'
Retirement
System
Judicial
Retirement
Fund
Peace
Officers'
Annuity and
Benefits
State Port
Authority
Hourly
Plan
ASSETS
Cash and Cash Equivalents
Investments
U.S. Treasury Securities
U.S. Agency Securities
Mortgage Backed Securities
Corporate Stocks
Corporate Bonds
Real Estate
Commercial Paper
International Stocks
Mutual and Money Market Funds
Receivables
Employer Contributions Receivable
Member Contributions Receivable
Investment Sales Receivable
Accounts Receivable
Interest and Dividends Receivable
Securities Lending Collateral
Other Assets
Capital Assets, Net of Accumulated Depreciation
Capital Assets Not Depreciated
TOTAL ASSETS
LIABILITIES
Warrants Payable
Investment Purchases Payable
Salaries Payable
Due to Other Funds
Accounts Payable
Due to Other Governments
Claims Payable
Securities Lending Obligation
Deferred Revenue
Compensated Absences
Other Post-employment Benefits
TOTAL LIABILITIES
NET ASSETS
Held in Trust for Pension and Other Employee Benefits
TOTAL NET ASSETS
$ 14,272
$ 22,919
$ 1,782
$ 257
$ 0
319,656
179,440
142,408
3,573,333
1,424,254
923,235
229,985
1,101,393
78,596
30,329
15,197
425,256
741
25,278
855,001
-
50,279
2,535
9,391,188
696,921
382,678
316,296
7,426,861
2,923,052
1,893,380
347,431
2,488,588
138,374
64,509
25,796
923,111
1,219
54,920
1,943,162
-
100,855
5,085
19,755,157
15,791
9,984
6,562
106,307
35,713
2,686
2,999
33,219
5,254
369
114
17
-
1,094
29,439
-
-
-
251,330
2,419
1,091
3,297
-
2,396
-
-
-
9,428
-
-
-
2
75
8
-
10
-
18,983
2,439
1,596
939
1,458
3,684
-
-
-
1,848
-
-
-
-
100
2,138
-
-
-
14,202
$ 11,004
343,876
900
-
407
2
-
855,001
-
1,691
1,551
1,214,432
$ 18,042
750,027
1,217
-
813
3
-
1,943,162
-
2,591
1,467
2,717,322
$ 520
22
15
-
6
-
-
29,439
-
64
20
30,086
$ 113
-
28
2
11
-
-
8
-
92
45
299
$ 0
-
-
-
-
-
-
2,138
-
-
-
2,138
8,176,756
$ 8,176,756
17,037,835
$ 17,037,835
221,244
$ 221,244
18,684
$ 18,684
12,064
$ 12,064
246
State Port
Authority
Railway
Plan
Clerks
and
Registers
Supernumerary
Flexible
Employees'
Benefits
Board
Employee
Savings
Plans
Retired
Education
Employees'
Health Care
Retired State
Employees'
Health Care
Trust
Totals
143
93
55
85
216
-
-
-
108
-
-
-
-
6
125
-
-
-
831
$ 0
$ 0
-
-
-
-
-
-
125
-
-
-
125
706
$ 706
$ 29
$ 1,098
$ 956
$ 0
$ 0
$ 41,313
2,525
1,548
1,014
1
4,377
-
-
-
933
-
-
-
-
108
1,832
-
-
-
12,367
-
-
-
-
-
-
-
-
-
-
-
-
223
-
47
-
-
-
1,368
274,581
137,135
109,212
197,923
445,676
-
195,690
-
48,566
-
-
-
-
11,319
258,613
-
-
-
1,679,671
59,930
35,191
23,493
305,705
80,532
-
114,326
101,970
46,923
-
-
57
11,396
3,093
54,194
3,231
-
-
840,041
9,937
10,104
3,278
40,119
19,670
-
-
12,157
1,526
-
2
-
2,157
694
58,753
-
-
-
158,397
1,384,342
758,860
606,554
11,651,792
4,939,570
2,819,301
890,431
3,737,327
331,556
95,207
41,109
1,348,441
15,738
96,687
3,203,312
3,231
151,144
7,620
32,123,535
$ 29
-
-
-
-
-
-
1,832
-
-
-
1,861
$ 0
-
-
-
2,626
-
-
47
-
-
205
2,878
$ 955
20
-
-
-
-
-
258,613
-
-
-
259,588
$ 0
78
-
-
-
-
35,383
54,194
-
-
-
89,655
$ 0
-
-
-
-
-
14,316
58,753
2,158
-
-
75,227
$ 30,663
1,094,023
2,160
2
3,863
5
49,699
3,203,312
2,158
4,438
3,288
4,393,611
10,506
$ 10,506
(1,510)
$ (1,510)
1,420,083
$ 1,420,083
750,386
$ 750,386
83,170
$ 83,170
27,729,924
$ 27,729,924
247
STATE OF ALABAMA
COMBINING STATEMENT OF CHANGES IN PLAN NET ASSETS
Pension and Other Employee Benefit Trust Funds
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Employees'
Retirement
System
Teachers'
Retirement
System
Judicial
Retirement
Fund
Peace
Officers'
Annuity and
Benefits
State Port
Authority
Hourly
Plan
ADDITIONS
Contributions:
Plan members
Employer
Medicare Part D Retiree Drug Subsidy
Total Contributions
Investment Earnings
Investment Interest and Dividends
Net Increase (Decrease) in Fair Value of Investments
Securities Lending Income
Total Investment Earnings
Less:
Investment Expense
Securities Lending Interest and Fees
Net Investment Income
Other Additions
Licenses and Fees
Miscellaneous
Total Other Additions
Total Additions
DEDUCTIONS
Benefit Payments and Refunds
Administrative Expense
Transfers Out
Total Deductions
Changes in Net Assets
Net Assets Held in Trust for Pension and Other
Employee Benefits, October 1, 2009, as Restated
Net Assets Held in Trust for Pension and Other
Employee Benefits, September 30, 2010
$ 194,977
377,974
-
572,951
$ 319,770
776,415
-
1,096,185
$ 2,566
10,815
-
13,381
$ 660
81
-
741
$ 0
1,569
-
1,569
268,708
427,365
5,427
701,500
2,588
2,384
696,528
560,023
886,997
12,072
1,459,092
5,423
5,283
1,448,386
-
2,165
2,165
-
1,825
1,825
6,551
15,287
164
22,002
-
78
21,924
-
-
0
1,271,644
2,546,396
35,305
759,521
13,705
-
773,226
1,611,286
17,294
-
1,628,580
498,418
917,816
24,759
288
-
25,047
10,258
479
1,004
-
1,483
42
-
1,441
3,193
171
3,364
5,546
4,385
420
1
4,806
740
7,678,338
16,120,019
210,986
17,944
541
506
9
1,056
-
6
1,050
-
-
0
2,619
905
-
-
905
1,714
10,350
$ 8,176,756
$ 17,037,835
$ 221,244
$ 18,684
$ 12,064
248
State Port
Authority
Railway
Plan
Clerks
and
Registers
Supernumerary
Flexible
Employees'
Benefits
Board
Employee
Savings
Plans
Retired
Education
Employees'
Health Care
Retired State
Employees'
Health Care
Trust
Totals
32
53
1
86
-
-
0
255
-
-
86
$ 0
169
-
169
$ 706
170
-
-
170
85
621
$ 371
-
-
371
$ 24,602
2,910
-
27,512
$ 118,534
-
-
118,534
$ 69,136
332,590
27,959
429,685
$ 25,081
99,284
6,794
131,159
$ 755,697
1,601,807
34,753
2,392,257
568
477
10
1,055
-
6
1,049
-
-
0
-
-
-
0
-
-
0
-
3
3
52,009
55,035
1,614
108,658
-
921
107,737
-
-
0
17,937
39,820
434
58,191
-
218
57,973
-
-
0
2,895
5,933
131
8,959
-
63
8,896
-
-
0
909,743
1,432,477
19,862
2,362,082
8,053
8,959
2,345,070
3,193
4,164
7,357
1,420
27,515
226,271
487,658
140,055
4,744,684
348
-
-
348
1,072
9,434
27,024
1,834
-
28,858
78,105
-
-
78,105
(1,343)
148,166
(167)
1,271,917
406,218
1,059
-
407,277
80,381
670,005
136,089
736
-
136,825
3,048,810
35,336
1
3,084,147
3,230
1,660,537
79,940
26,069,387
$ 10,506
$ (1,510)
$ 1,420,083
$ 750,386
$ 83,170
$ 27,729,924
249
250
Private-Purpose Trust Funds
Private-Purpose Trust Funds report trust arrangements where the principal and income benefit individuals, private
organizations or other governments.
Prepaid Affordable College Tuition
Accounts for the operation of a prepaid college tuition plan for the benefit of individual citizens of Alabama.
Alabama College Education Savings Plan
Accounts for the operation of an individual college tuition savings plan.
Local Education Endowments
Accounts for the proceeds of several endowments donated by private citizens for the benefit of specific local school systems.
Foundation for Local Schools
Accounts for monies donated by the private sector which are invested and used for the benefit of specific local public schools.
251
STATE OF ALABAMA
COMBINING STATEMENT OF FIDUCIARY NET ASSETS
Private-Purpose Trust Funds
September 30, 2010
(Amounts in Thousands)
Prepaid
Affordable
College
Tuition
Alabama
College
Education
Savings Plan
Local
Education
Endowments
Foundation
for Local
Schools
Totals
ASSETS
Cash and Cash Equivalents
Investments
Time Deposits
U.S. Treasury Securities
U.S. Agency Securities
State and Local Government Securities
Mortgage Backed Securities
Corporate Stocks
Corporate Bonds
Real Estate
Commercial Paper
International Stocks
International Bonds
Mutual and Money Market Funds
Commingled Funds
Receivables
Due from Other Funds
Accounts Receivable
Interest and Dividends Receivable
Securities Lending Collateral
TOTAL ASSETS
LIABILITIES
Warrants Payable
Salaries Payable
Due to Other Funds
Accounts Payable
Due to Other Governments
Securities Lending Obligation
Compensated Absences
Other Post-employment Benefits
TOTAL LIABILITIES
NET ASSETS
Held in Trust for Beneficiaries
TOTAL NET ASSETS
$ 3,972
$ 1,061
$ 545
$ 0
$ 5,578
-
156,358
29,335
202
68,065
75,943
83,360
-
-
28,981
2,190
28,184
7,567
21
356
2,616
24
487,174
302
20
34
35,822
267
24
50
42
36,561
-
-
-
-
-
-
-
-
-
-
-
682,015
-
-
-
286
3
683,365
-
2
-
855
-
3
-
9
869
132
815
287
-
322
3,296
1,364
840
540
-
-
302
-
-
-
1
663
9,107
-
-
-
-
-
663
-
-
663
-
195
120
-
75
-
355
-
-
-
-
62
-
-
-
9
309
1,125
-
-
-
-
-
309
-
-
309
132
157,368
29,742
202
68,462
79,239
85,079
840
540
28,981
2,190
710,563
7,567
21
356
2,912
999
1,180,771
302
22
34
36,677
267
999
50
51
38,402
450,613
$ 450,613
682,496
$ 682,496
8,444
$ 8,444
816
$ 816
1,142,369
$ 1,142,369
252
STATE OF ALABAMA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
Private-Purpose Trust Funds
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Prepaid
Affordable
College
Tuition
Alabama
College
Education
Savings Plan
Local
Education
Endowments
Foundation
for Local
Schools
Totals
ADDITIONS
Contributions:
Plan members
Total Contributions
Investment Earnings
Investment Interest and Dividends
Net Increase (Decrease) in Fair Value of Investments
Securities Lending Income
Total Investment Earnings
Less:
Securities Lending Interest and Fees
Net Investment Income
Other Additions
Miscellaneous
Total Other Additions
Total Additions
DEDUCTIONS
Benefit Payments and Refunds
Administrative Expense
Transfers Out
Total Deductions
Changes in Net Assets
Net Assets Held in Trust
for Beneficiaries, October 1, 2009, as Restated
Net Assets Held in Trust
for Beneficiaries, September 30, 2010
$ 8,236
8,236
$ 222,852
222,852
$ 0
0
$ 0
0
$ 231,088
231,088
15,169
32,098
154
47,421
48
47,373
259
259
11,310
44,555
-
55,865
-
55,865
-
0
183
974
12
1,169
4
1,165
-
0
55,868
278,717
1,165
92,249
2,230
-
94,479
228,123
5,767
51
233,941
(38,611)
44,776
489,224
637,720
11
-
-
11
1,154
7,290
44
40
1
85
1
84
-
0
84
-
-
-
0
84
732
26,706
77,667
167
104,540
53
104,487
259
259
335,834
320,383
7,997
51
328,431
7,403
1,134,966
$ 450,613
$ 682,496
$ 8,444
$ 816
$ 1,142,369
253
254
Agency Funds
Agency Funds report assets held by the State in a purely custodial capacity (assets equal liabilities). Agency funds typically
involve the receipt, temporary investment, and remittance of resources to individuals, organizations or other governments.
State Clearing Accounts
Accounts for the collection and distribution of State taxes and licenses as well as amounts collected and held by courts for
individuals.
Taxes Collected for Local Governments
Accounts for local taxes which are collected by the State as a service for local governments. These taxes do not represent
future revenues of the State.
Payroll
Accounts for amounts withheld from employees that are not yet distributed to outside organizations or governments.
Other Agency Funds
Are aggregated for financial reporting purposes and represent amounts held for child support payments, cash bonds, and
numerous other amounts held for individuals and organizations outside of State government.
255
STATE OF ALABAMA
COMBINING STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
Agency Funds
September 30, 2010
(Amounts in Thousands)
Taxes
State
Clearing
Accounts
Collected for
Local
Governments
Payroll
Other
Agency
Funds
$ 137,986
-
1
6
501
$ 138,494
$ 3,470
-
-
-
150
$ 3,620
$ 3,257
-
7
3
140
$ 3,407
$ 36,023
62,583
121
17
1,326
$ 100,070
Totals
$ 180,736
62,583
129
26
2,117
$ 245,591
$ 16,927
1
591
501
120,474
$ 138,494
$ 96
-
3,374
150
-
$ 3,620
$ 2,434
-
-
140
833
$ 3,407
$ 3,082
618
147
1,326
94,897
$ 100,070
$ 22,539
619
4,112
2,117
216,204
$ 245,591
ASSETS
Cash and Cash Equivalents
Investments
Due from Other Funds
Accounts Receivable
Securities Lending Collateral
TOTAL ASSETS
LIABILITIES
Warrants Payable
Accounts Payable
Due to Other Governments
Securities Lending Obligation
Amounts Held in Custody for Others
TOTAL LIABILITIES
256
257
STATE OF ALABAMA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES
Agency Funds
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Balance
September 30,
2010
Balance
October 1,
2009
Additions
Reductions
STATE CLEARING ACCOUNTS
ASSETS
Cash and Cash Equivalents
Due from Other Funds
Accounts Receivable
Taxes Receivable
Securities Lending Collateral
TOTAL ASSETS
LIABILITIES
Warrants Payable
Due to Other Funds
Accounts Payable
Tax Refunds Payable
Due to Other Governments
Securities Lending Obligation
Amounts Held Pending Distribution
Deferred Revenue
Amounts Held in Custody for Others
TOTAL LIABILITIES
TAXES COLLECTED FOR LOCAL GOVTS
ASSETS
Cash and Cash Equivalents
Securities Lending Collateral
TOTAL ASSETS
LIABILITIES
Warrants Payable
Accounts Payable
Due to Other Governments
Securities Lending Obligation
Amounts Held Pending Distribution
Amounts Held in Custody for Others
TOTAL LIABILITIES
PAYROLL
ASSETS
Cash and Cash Equivalents
Due from Other Funds
Accounts Receivable
Securities Lending Collateral
TOTAL ASSETS
LIABILITIES
Warrants Payable
Due to Other Funds
Accounts Payable
Securities Lending Obligation
Amounts Held Pending Distribution
Amounts Held in Custody for Others
TOTAL LIABILITIES
$ 173,509
-
10
-
2,323
$ 175,842
$ 16,215,915
793
-
570,694
501
$ 16,787,903
$ 16,251,438
792
4
570,694
2,323
$ 16,825,251
$ 137,986
1
6
-
501
$ 138,494
$ 31,367
-
-
-
1,712
2,323
-
-
140,440
$ 175,842
$ 787,563
353,529
30,046
230,115
8,357
501
29,822,746
4,907
435,803
$ 31,673,567
$ 802,003
353,529
30,045
230,115
9,478
2,323
29,822,746
4,907
455,769
$ 31,710,915
$ 16,927
-
1
-
591
501
-
-
120,474
$ 138,494
$ 3,112
236
$ 3,348
$ 258,276
150
$ 258,426
$ 257,918
236
$ 258,154
$ 3,470
150
$ 3,620
$ 38
-
1,826
236
-
1,248
$ 3,348
$ 252,247
9,600
258,447
150
1,316
-
$ 521,760
$ 252,189
9,600
256,899
236
1,316
1,248
$ 521,488
$ 96
-
3,374
150
-
-
$ 3,620
$ 2,664
7
2
202
$ 2,875
$ 2,436,441
122
1
140
$ 2,436,704
$ 2,435,848
122
-
202
$ 2,436,172
$ 3,257
7
3
140
$ 3,407
$ 1,812
-
-
202
-
861
$ 2,875
$ 1,941,174
290
783,503
140
701,001
587,437
$ 4,013,545
$ 1,940,552
290
783,503
202
701,001
587,465
$ 4,013,013
$ 2,434
-
-
140
-
833
$ 3,407
258
OTHER AGENCY FUNDS
ASSETS
Cash and Cash Equivalents
Investments
Due from Other Funds
Accounts Receivable
Securities Lending Collateral
TOTAL ASSETS
LIABILITIES
Warrants Payable
Due to Other Funds
Accounts Payable
Due to Other Governments
Securities Lending Obligation
Amounts Held Pending Distribution
Amounts Held in Custody for Others
TOTAL LIABILITIES
TOTALS - ALL AGENCY FUNDS
ASSETS
Cash and Cash Equivalents
Investments
Due from Other Funds
Accounts Receivable
Taxes Receivable
Securities Lending Collateral
TOTAL ASSETS
LIABILITIES
Warrants Payable
Due to Other Funds
Accounts Payable
Tax Refunds Payable
Due to Other Governments
Securities Lending Obligation
Amounts Held Pending Distribution
Deferred Revenue
Amounts Held in Custody for Others
TOTAL LIABILITIES
Balance
October 1,
2009
Additions
Reductions
Balance
September 30,
2010
$ 33,676
56,743
39
16
2,150
$ 92,624
$ 736,738
8,424
138
239
1,326
$ 746,865
$ 734,391
2,584
56
238
2,150
$ 739,419
$ 36,023
62,583
121
17
1,326
$ 100,070
$ 3,672
-
692
54
2,150
-
86,056
$ 92,624
$ 321,998
10
17,513
782
1,326
344,909
395,432
$ 1,081,970
$ 322,588
10
17,587
689
2,150
344,909
386,591
$ 1,074,524
$ 3,082
-
618
147
1,326
-
94,897
$ 100,070
$ 212,961
56,743
46
28
-
4,911
$ 274,689
$ 19,647,370
8,424
1,053
240
570,694
2,117
$ 20,229,898
$ 19,679,595
2,584
970
242
570,694
4,911
$ 20,258,996
$ 180,736
62,583
129
26
-
2,117
$ 245,591
$ 36,889
-
692
-
3,592
4,911
-
-
228,605
$ 274,689
$ 3,302,982
353,829
840,662
230,115
267,586
2,117
30,869,972
4,907
1,418,672
$ 37,290,842
$ 3,317,332
353,829
840,735
230,115
267,066
4,911
30,869,972
4,907
1,431,073
$ 37,319,940
$ 22,539
-
619
-
4,112
2,117
-
-
216,204
$ 245,591
259
260
Nonmajor Component Units
Higher Education Loan Corporation
Provides Alabama lending institutions with a secondary market for student loans made under the Higher Education Act, which
established the Federal Guaranteed Student Loan Program.
Drinking Water Finance Authority
Issues revolving loan bonds and lends the bond proceeds to local governments at below market rates for the construction of
drinking water treatment and distribution facilities.
Alabama Agricultural and Mechanical University
Reports the operations and balances of the University.
Alabama State University
Reports the operations and balances of the University.
Jacksonville State University
Reports the operations and balances of the University.
University of North Alabama
Reports the operations and balances of the University.
Troy University
Reports the operations and balances of the University.
Space Science Exhibit Commission
Operates the U.S. Space and Rocket Center and the U.S. Space Camp.
Historical Commission
Preserves and maintains buildings, objects, and sites of historical significance.
Incentives Finance Authority
Issues bonded debt for the purpose of making incentive grants to major industries locating or expanding within the State.
Twenty-first Century Authority
Finances economic development and industrial recruitment incentive grants primarily with debt secured by tobacco settlement
revenues.
Other Nonmajor Component Units
Combined totals of other nonmajor component units, which are reported in more detail later in this report.
261
STATE OF ALABAMA
COMBINING STATEMENT OF NET ASSETS
Nonmajor Component Units
September 30, 2010
(Amounts in Thousands)
Higher
Education
ASSETS
Cash and Cash Equivalents
Investments
Due from Primary Government
Accounts Receivable
Due from Other Governments
Interest and Dividends Receivable
Mortgages, Notes, and Loans Receivable
Securities Lending Collateral
Inventory
Restricted Assets
Other Assets
Capital Assets, Net of Accumulated Depreciation
Capital Assets Not Depreciated
TOTAL ASSETS
LIABILITIES
Warrants Payable
Salaries Payable
Due to Primary Government
Due to Component Units
Accounts Payable
Interest Payable
Due to Other Governments
Securities Lending Obligation
Unearned Revenue
Amounts Held in Custody for Others
Noncurrent Liabilities:
Due Within One Year
Due In More Than One Year
TOTAL LIABILITIES
NET ASSETS
Invested in Capital Assets, Net of Related Debt
Restricted for:
Permanent - Expendable
Permanent - Non-expendable
Debt Service
Other Purposes
Unrestricted
TOTAL NET ASSETS
Drinking
Water
Finance
Authority
Alabama
Agricultural and
Mechanical
University
$ 45,646
54,764
500
-
239,521
1,177
-
201
-
-
9,321
-
-
351,130
$ 7,790
8,996
-
21,381
-
-
15,011
-
-
-
13,364
89,941
36,180
192,663
Alabama
State
University
Jacksonville
State
University
$ 109,122
64,096
-
13,938
1,878
108
1,966
-
9
-
4,951
139,480
55,911
391,459
$ 55,198
34,286
-
10,773
-
-
1,048
-
8
-
2,657
58,204
63,898
226,072
Loan
Corporation
$ 12,237
-
-
240
-
3,221
67,267
-
-
-
935
-
-
83,900
-
-
-
-
112
140
949
-
-
-
1
-
1,158
-
21
1,043
26,377
201
-
-
75,100
-
76,301
6,815
166,862
202,478
-
-
-
-
13,792
1,208
-
-
30,829
3,664
3,555
60,004
113,052
-
-
-
-
14,239
-
-
-
17,827
-
4,075
165,148
201,289
-
3,366
-
-
5,877
-
-
-
20,276
2,731
2,206
82,120
116,576
-
-
62,666
96,538
39,012
5,216
-
-
-
2,383
$ 7,599
-
-
148,652
-
-
$ 148,652
8,361
-
5,745
10,593
(7,754)
$ 79,611
25,497
44,954
-
-
23,181
$ 190,170
23,755
10,589
6,144
-
29,996
$ 109,496
262
University
of
North
Alabama
$ 40,257
31,807
-
7,341
-
17
2,345
-
29
-
889
59,262
5,642
147,589
10,236
15,649
4,242
-
35,363
$ 108,976
-
905
-
-
1,598
432
-
-
12,864
532
1,139
21,143
38,613
43,486
Space
Science
Exhibit
Commission
$ 88
-
-
1,474
-
-
-
-
401
3,218
790
47,582
6,698
60,251
Troy
University
$ 196,819
29,131
-
45,805
-
-
2,247
-
89
-
2,600
154,496
42,730
473,917
Historical
Commission
$ 8,494
8,795
1
-
-
77
-
1,511
177
-
-
500
74,043
93,598
Incentives
Finance
Authority
Twenty-first
Century
Authority
$ 40,974
-
-
-
-
-
-
6
-
-
689
8,122
596
50,387
$ 31,625
-
-
105,000
-
-
-
12
-
-
-
588
-
137,225
Other
Nonmajor
Component
Units
$ 79,687
58,783
370
18,641
298
216
486
494
7,522
1,438
4,358
109,637
25,174
307,104
-
-
-
-
7,746
-
-
-
39,745
15,415
4,996
120,976
188,878
-
-
-
-
2,499
339
-
-
1,635
-
4,928
15,433
24,834
254
345
146
-
347
-
38
1,511
-
-
-
1,342
3,983
-
-
-
-
-
591
-
6
-
-
-
-
-
-
10
2,472
-
12
-
-
4,935
137,666
143,198
6,205
109,682
118,381
32
133
1,587
1
11,261
117
795
494
23,130
736
5,568
38,840
82,694
Totals
$ 627,937
290,658
871
224,593
241,697
4,816
90,370
2,224
8,235
4,656
40,554
667,812
310,872
2,515,295
287
4,749
2,891
1
57,502
6,342
28,159
2,224
146,306
23,078
119,522
919,216
1,310,277
93,127
38,743
74,542
8,718
588
108,876
566,296
21,986
16,566
-
-
153,360
$ 285,039
-
-
-
3,668
(6,994)
$ 35,417
-
8,872
-
-
6,201
$ 89,615
-
-
-
-
(101,529)
$ (92,811)
-
-
-
-
18,256
$ 18,844
13,052
17,300
-
-
85,182
$ 224,410
108,103
113,930
164,783
14,261
237,645
$ 1,205,018
263
STATE OF ALABAMA
COMBINING STATEMENT OF ACTIVITIES
Nonmajor Component Units
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Higher
Education
Loan
Expenses
Program Revenues
Charges for Services
Operating Grants and Contributions
Capital Grants and Contributions
Total Program Revenues
Net (Expense) Revenue
General Revenues:
Grants and Contributions Not Restricted to Specific Programs
Investment Earnings
Miscellaneous
Contributions to Permanent Funds and Endowments
Payments from State of Alabama
Total General Revenues, Special Items, and Transfers
Change in Net Assets
Net Assets, October 1, 2009, as Restated
Net Assets, September 30, 2010
Drinking
Water
Finance
Authority
$ 16,047
Alabama
Agricultural and
Mechanical
University
$ 138,955
Alabama
State
University
$ 137,885
Jacksonville
State
University
$ 114,806
Corporation
$ 8,490
1,338
-
-
1,338
9,059
14,381
-
23,440
46,631
52,644
-
99,275
55,264
44,914
6,281
106,459
53,231
27,280
-
80,511
(7,152)
7,393
(39,680)
(31,426)
(34,295)
-
-
-
-
-
0
-
4,052
1,647
-
-
5,699
-
214
1,683
-
39,604
41,501
-
6,775
-
-
42,438
49,213
-
5,213
7
-
39,371
44,591
(7,152)
14,751
$ 7,599
13,092
135,560
$ 148,652
1,821
77,790
$ 79,611
17,787
172,383
$ 190,170
10,296
99,200
$ 109,496
264
University
of
42,279
18,168
4,285
64,732
North
Alabama
$ 86,492
6,898
102,078
$ 108,976
(21,760)
-
1,940
118
4
26,596
28,658
Space
Science
Exhibit
Commission
$ 28,397
Troy
University
$ 258,853
Historical
Commission
$ 7,890
Incentives
Finance
Authority
$ 9,903
Twenty-first
Century
Authority
$ 96,209
Other
Nonmajor
Component
Units
Totals
$ 232,204
$ 1,136,131
165,253
63,954
8,284
237,491
24,980
29
2,983
27,992
1,724
2,169
295
4,188
-
-
-
0
-
-
-
0
102,502
46,484
1,292
150,278
502,261
270,023
23,420
795,704
(21,362)
(405)
(3,702)
(9,903)
(96,209)
(81,926)
(340,427)
-
3,395
1,498
-
48,711
53,604
-
1
-
-
1,436
1,437
-
915
6
-
4,513
5,434
-
131
-
-
20,851
20,982
-
98
-
-
96,446
96,544
1
4,962
508
-
92,595
98,066
1
27,696
5,467
4
412,561
445,729
32,242
252,797
$ 285,039
1,032
34,385
$ 35,417
1,732
87,883
$ 89,615
11,079
(103,890)
$ (92,811)
335
18,509
$ 18,844
16,140
208,270
$ 224,410
105,302
1,099,716
$ 1,205,018
265
STATE OF ALABAMA
COMBINING STATEMENT OF NET ASSETS
Other Nonmajor Component Units
September 30, 2010
(Amounts in Thousands)
ASSETS
Cash and Cash Equivalents
Investments
Due from Primary Government
Accounts Receivable
Due from Other Governments
Interest and Dividends Receivable
Mortgages, Notes, and Loans Receivable
Securities Lending Collateral
Inventory
Restricted Assets
Other Assets
Capital Assets, Net of Accumulated Depreciation
Capital Assets Not Depreciated
TOTAL ASSETS
LIABILITIES
Warrants Payable
Salaries Payable
Due to Primary Government
Due to Component Units
Accounts Payable
Interest Payable
Due to Other Governments
Securities Lending Obligation
Unearned Revenue
Amounts Held in Custody for Others
Noncurrent Liabilities:
Due Within One Year
Due In More Than One Year
TOTAL LIABILITIES
NET ASSETS
Invested in Capital Assets, Net of Related Debt
Restricted for:
Permanent - Expendable
Permanent - Non-expendable
Unrestricted
TOTAL NET ASSETS
U.S.S.
Alabama
Battleship
Commission
$ 1,350
966
-
1
-
-
-
-
208
-
77
10,209
255
13,066
Historic
Ironworks
Commission
$ 328
-
-
-
-
-
-
-
29
-
-
2,549
943
3,849
University
of
West
University
of
Alabama
Montevallo
$ 20,585
3,310
-
6,355
-
-
-
-
931
-
759
13,518
493
45,951
$ 23,151
35,444
-
5,986
-
-
459
-
-
1,438
3,206
42,473
1,155
113,312
-
-
-
-
251
-
-
-
-
-
541
399
1,191
-
12
-
-
43
-
-
-
-
-
47
705
807
-
-
-
-
894
53
-
-
8,123
31
195
3,681
12,977
-
-
-
-
3,864
-
497
-
9,162
380
903
21,461
36,267
Supercomputer
Authority
$ 6,639
-
18
-
-
-
-
286
-
-
105
2,639
174
9,861
-
-
4
-
519
-
21
286
-
-
-
272
1,102
2,813
10,464
3,063
13,012
22,687
-
-
5,946
$ 8,759
-
-
1,411
$ 11,875
-
-
(21)
$ 3,042
-
654
19,308
$ 32,974
11,122
13,668
29,568
$ 77,045
266
Alabama
Institute for
the Deaf
and Blind
Marine
Environmental
Sciences
Consortium
Red
Mountain
Recreation
Commission
State
Industrial
Development
Authority
Revolving
Loan
Fund
Authority
Crime
Victims
Compensation
Commission
Miscellaneous
Component
Units
$ 5,508
-
-
1,544
-
-
-
-
140
-
-
7,736
4,795
19,723
$ 1,073
630
-
-
-
-
-
-
-
-
7
21
14,035
15,766
$ 3,968
-
-
-
-
-
-
171
-
-
-
-
-
4,139
$ 0
-
-
-
-
-
-
-
-
-
-
-
-
0
$ 4,028
3,602
2
-
-
-
-
24
-
-
-
1,258
-
8,914
$ 2,119
-
350
-
298
-
-
13
31
-
-
327
161
3,299
-
-
-
-
419
-
-
-
5,243
121
46
919
6,748
-
-
-
-
-
-
-
-
-
-
40
761
801
32
-
-
-
59
7
139
171
-
-
500
135
1,043
-
-
-
-
-
57
-
-
-
-
560
7,770
8,387
-
121
1,333
1
21
-
-
24
-
-
1,675
470
3,645
-
-
250
-
-
-
138
13
-
2
-
183
586
Totals
$ 79,687
58,783
370
18,641
298
216
486
494
7,522
1,438
4,358
109,637
25,174
307,104
32
133
1,587
1
11,261
117
795
494
23,130
736
5,568
38,840
82,694
$ 10,938
14,831
-
4,755
-
216
27
-
6,183
-
204
28,907
3,163
69,224
1,839
2,978
25,891
$ 60,084
-
-
-
-
5,191
-
-
-
602
202
1,061
2,084
9,140
29,376
12,439
13,276
-
-
1,258
488
108,876
91
-
445
$ 12,975
-
-
1,689
$ 14,965
-
-
3,096
$ 3,096
-
-
(8,387)
$ (8,387)
-
-
4,011
$ 5,269
-
-
2,225
$ 2,713
13,052
17,300
85,182
$ 224,410
267
STATE OF ALABAMA
COMBINING STATEMENT OF ACTIVITIES
Other Nonmajor Component Units
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Supercomputer
Expenses
Program Revenues
Charges for Services
Operating Grants and Contributions
Capital Grants and Contributions
Total Program Revenues
Net (Expense) Revenue
General Revenues:
Grants and Contributions Not Restricted to Specific Programs
Investment Earnings
Miscellaneous
Payments from State of Alabama
Total General Revenues, Special Items, and Transfers
Change in Net Assets
Net Assets, October 1, 2009, as Restated
Net Assets, September 30, 2010
U.S.S.
Alabama
Battleship
Commission
$ 4,090
Historic
Ironworks
Commission
$ 1,665
University
of
West
Alabama
$ 55,342
University
of
Montevallo
$ 53,690
Authority
$ 9,031
2,882
2
-
2,884
(6,147)
-
-
-
8,278
8,278
3,559
421
56
4,036
(54)
-
9
-
-
9
1,417
211
-
1,628
33,528
11,810
-
45,338
23,940
11,262
-
35,202
(37)
(10,004)
(18,488)
-
-
-
229
229
-
49
-
13,796
13,845
-
3,933
38
18,916
22,887
2,131
6,628
$ 8,759
(45)
11,920
$ 11,875
192
2,850
$ 3,042
3,841
29,133
$ 32,974
4,399
72,646
$ 77,045
268
30,172
11,513
1,236
42,921
(43,420)
Alabama
Institute for
the Deaf
and Blind
$ 86,341
(172)
60,256
$ 60,084
-
639
431
42,178
43,248
Marine
Environmental
Sciences
Consortium
$ 11,544
Red
Mountain
Recreation
Commission
$ 881
State
Revolving
Industrial
Development
Authority
$ 1,813
Loan
Fund
Authority
$ 699
Crime
Victims
Compensation
Commission
$ 5,306
Miscellaneous
Component
Units
Totals
$ 1,802
$ 232,204
2,540
7,008
-
9,548
(1,996)
-
1
-
3,499
3,500
-
1,252
-
1,252
371
-
14
-
-
14
74
-
-
74
-
-
-
0
(1,739)
(699)
-
-
-
4,107
4,107
-
-
-
1,217
1,217
4,288
2,770
-
7,058
1,752
1
295
30
81
407
102
235
-
337
102,502
46,484
1,292
150,278
(1,465)
(81,926)
-
22
9
294
325
1
4,962
508
92,595
98,066
1,504
11,471
$ 12,975
385
14,580
$ 14,965
2,368
728
$ 3,096
518
(8,905)
$ (8,387)
2,159
3,110
$ 5,269
(1,140)
3,853
$ 2,713
16,140
208,270
$ 224,410
269
270
Supplemental Statements and Schedules
Supplemental Statements and Schedules presents schedules and statements which bring together information spread
throughout the statements, presents information in greater detail, or presents information that demonstrates legal compliance.
271
STATE OF ALABAMA
SCHEDULE OF FEDERAL REVENUES BY AGENCY
All Funds and Component Units, Excluding Amounts Received Directly by Higher Education
For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Amount
Administrative Office of Courts
Agriculture and Industries
Attorney General
Child Abuse Prevention
Children's Affairs
Commission On Higher Education
Conservation and Natural Resources
Corrections
Council on the Arts
Crime Victims Compensation Commission
Criminal Justice Information Center
District Attorneys
Drinking Water Finance Authority
Economic and Community Affairs
Education
Emergency Management
Environmental Management
Farmers' Market Authority
Finance
Finance Special Funds
Forensic Sciences
Forestry Commission
Forever Wild Land Trust
Geological Survey
Governor's Office of Faith Based and Community Initiatives
High School of Math and Science
Historical Commission
Human Resources
Industrial Relations
Labor
Manufactured Housing Commission
Medicaid
Mental Health
Military
Office of Homeland Security
Other - Medicare Part D
Other Agencies
Pardons and Paroles
Postsecondary Education
Public Health
Public Library Service
Public Safety
Public Service Commission
Rehabilitation Services
Revenue
Secretary of State
Senior Services
Soil and Water Conservation Commission
State Port Authority
Surface Mining Commission
Transportation
University Stabilization Funds
Veterans Affairs
Water Pollution Control Authority
Total Federal Revenues
$ 794
3,737
1,840
1,464
175
1,678
17,925
158,390
1,135
2,766
2,754
120
14,379
342,240
1,280,976
53,861
28,194
1,815
500
2,346
2,546
10,717
2,314
1,589
1,771
392
1,555
1,648,456
854,683
158
252
3,968,811
31,814
67,192
21,910
6,794
444
224
29,010
428,837
2,782
9,962
901
68,402
712
376
27,907
273
5,598
1,065
928,525
91,945
13,385
29,189
$ 10,177,580
272
STATE OF ALABAMA
STATISTICAL SECTION
This part of the State of Alabama's comprehensive annual financial report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the State's overall financial health.
Financial Trends
Page 274
These schedules contain trend information to help the reader understand how the State's financial performance has
changed over time.
Net Assets by Component
Changes in Net Assets
Fund Balances of Governmental Funds
Changes in Fund Balances of Governmental Funds
Revenue Capacity
Page 284
These schedules contain information to help the reader assess the factors affecting the State's ability to generate its
individual income tax and corporate income tax.
Major Revenue Base
Revenue Rates
Principal Revenue Payers
Debt Capacity
Page 290
These schedules present information to help the reader assess the affordability of the State's current levels of
outstanding debt and the State's ability to issue additional debt in the future.
Ratios of Outstanding Debt
Ratios of General Bonded Debt Outstanding
Debt Limitations
Pledged Revenue Coverage
Demographic and Economic Information
Page 296
These schedules offer demographic and economic indicators to help the reader understand the environment within
which the State's financial activities take place.
Labor Force Statistics
Population/Per Capita Personal Income Statistics
Top Ten Employers in Alabama
Operating Information
Page 300
These schedules contain service and infrastructure data to help the reader understand how the information in the
State's financial report relates to the services the State provides and the activities it performs.
State Government Employment by Function
Indicators of Demand or Level of Service
Indicators of Volume, Usage and Nature of Capital Assets
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant
year.
Note: The number of years presented on each schedule varies according to available data.
273
STATE OF ALABAMA
NET ASSETS BY COMPONENT
For the Last Nine Fiscal Years Ended September 30
(Amounts in Thousands)
2010
2009
2008
2007
2006
Governmental Activities
Invested in Capital Assets, Net of Related Debt
Restricted
Unrestricted
Total Governmental Activities Net Assets
Business-type Activities
Invested in Capital Assets, Net of Related Debt
Restricted
Unrestricted
Total Business-type Activities Net Assets
Primary government
Invested in Capital Assets, Net of Related Debt
Restricted
Unrestricted
Total Primary Government Net Assets
$ 18,552,286
4,879,585
(820,857)
22,611,014
$ 18,184,809
4,448,305
(555,756)
22,077,358
$ 17,609,211
4,624,715
(223,495)
22,010,431
$ 16,973,157
6,020,208
(113,210)
22,880,155
$ 16,360,753
5,853,605
204,854
22,419,212
881,681
102,653
143,981
1,128,315
867,292
92,470
240,059
1,199,821
754,001
479,666
344,797
1,578,464
709,460
513,663
284,537
1,507,660
643,742
503,024
244,630
1,391,396
19,433,967
4,982,238
(676,876)
$ 23,739,329
19,052,101
4,540,775
(315,697)
$ 23,277,179
18,363,212
5,104,381
121,302
$ 23,588,895
17,682,617
6,533,871
171,327
$ 24,387,815
17,004,495
6,356,629
449,484
$ 23,810,608
274
2005
$ 15,820,864
5,004,105
299,693
21,124,662
508,280
352,524
330,692
1,191,496
16,329,144
5,356,629
630,385
$ 22,316,158
2004
2003
2002
$ 15,241,575
4,245,991
310,172
19,797,738
$ 14,774,902
3,869,559
185,427
18,829,888
$ 3,924,791
3,145,156
489,765
7,559,712
459,250
351,847
204,790
1,015,887
425,588
365,594
182,270
973,452
433,667
470,196
117,372
1,021,235
15,700,825
4,597,838
514,962
$ 20,813,625
15,200,490
4,235,153
367,697
$ 19,803,340
4,358,458
3,615,352
607,137
$ 8,580,947
275
STATE OF ALABAMA
CHANGES IN NET ASSETS
For the Last Nine Fiscal Years Ended September 30
(Amounts in Thousands)
2010
2009
2008
2007
2006
Expenses
Governmental Activities
Economic Development and Regulation
Education and Cultural Resources
Natural Resources and Recreation
Health
Social Services
Protection of Persons and Property
Transportation
General Government
Debt Service - Interest and Other Charges
Total Governmental Activities Expenses
Business-type Activities
Unemployment Compensation
State Port Authority
Alabama College System
Alcoholic Beverage Control Board
Public Education Employees Health Insurance
Nonmajor Proprietary Funds
Total Business-type Activities Expenses
Total Primary Government Expenses
Program Revenues
Governmental Activities
Economic Development and Regulation
Education and Cultural Resources
Natural Resources and Recreation
Health
Social Services
Protection of Persons and Property
Transportation
General Government
Debt Service - Interest and Other Charges
Operating Grants and Contributions
Capital Grants and Contributions
Total Governmental Activities Program Revenues
Business-type Activities
Unemployment Compensation
State Port Authority
Alabama College System
Alcoholic Beverage Control Board
Public Education Employees Health Insurance
Operating Grants and Contributions
Capital Grants and Contributions
Nonmajor Proprietary Funds
Total Business-type Activities Program Revenues
Total Primary Government Program Revenues
$ 229,170
6,434,312
149,745
6,143,253
2,364,313
1,146,261
1,257,094
1,067,587
47,829
18,839,564
$ 306,533
6,393,573
113,621
5,555,138
1,977,390
1,112,213
1,120,902
983,451
51,184
17,614,005
$ 410,911
7,197,095
131,327
5,316,763
1,753,526
1,095,652
1,067,671
1,020,453
57,253
18,050,651
$ 335,373
6,680,377
131,688
5,361,666
1,678,091
1,014,248
997,376
925,737
43,391
17,167,947
$ 215,950
5,764,988
145,414
4,823,686
1,627,951
1,032,088
1,025,928
819,122
42,672
15,497,799
1,323,058
123,551
897,134
254,001
-
45,639
2,643,383
1,005,780
127,192
829,039
253,312
-
45,339
2,260,662
330,068
127,200
812,195
249,389
-
47,168
1,566,020
248,448
115,714
745,122
230,370
-
45,955
1,385,609
232,447
89,939
683,618
215,832
-
48,972
1,270,808
21,482,947
19,874,667
19,616,671
18,553,556
16,768,607
92,134
42,774
62,347
249,149
7,622
231,004
186,440
337,486
-
9,148,048
927,443
11,284,447
411,147
120,460
179,677
252,647
-
1,176,837
31,809
48,504
2,221,081
178,549
15,435
72,004
231,929
6,416
231,722
180,924
428,248
-
7,609,718
812,481
9,767,426
221,086
103,422
160,839
250,949
-
666,931
49,654
48,011
1,500,892
166,008
12,131
164,709
204,561
6,590
230,745
198,669
573,465
-
6,670,099
874,111
9,101,088
227,906
132,481
155,559
252,265
-
305,339
13,717
47,019
1,134,286
157,421
12,406
53,920
259,598
5,905
208,252
199,489
464,574
-
6,618,419
719,041
8,699,025
228,572
108,235
152,558
239,852
-
270,897
19,413
49,548
1,069,075
146,568
10,070
54,121
194,339
6,127
187,325
192,458
565,311
-
6,612,934
801,902
8,771,155
264,895
90,998
145,714
219,429
-
277,667
45,053
52,384
1,096,140
$ 13,505,528
$ 11,268,318
$ 10,235,374
$ 9,768,100
$ 9,867,295
276
2005
2004
2003
2002
251,137
85,984
646,868
192,278
-
47,838
1,224,105
15,678,240
$ 185,680
5,203,315
82,841
4,641,314
1,606,588
1,031,731
882,823
776,791
43,052
14,454,135
$ 9,444,190
151,204
10,952
60,111
206,017
4,141
183,281
174,509
460,047
450
6,315,902
673,977
8,240,591
307,724
87,022
146,194
202,959
-
269,667
22,776
167,257
1,203,599
$ 59,894
4,833,259
95,032
4,529,302
1,496,160
746,763
856,603
726,150
42,083
13,385,246
$ 63,623
4,755,420
101,811
4,365,295
1,511,438
692,104
772,935
770,431
43,493
13,076,550
$ 66,746
4,607,245
94,449
4,312,713
1,425,124
650,341
1,059,637
641,869
64,538
12,922,662
308,281
74,679
627,846
184,391
736,669
144,714
2,076,580
410,384
74,894
593,278
177,003
667,564
127,559
2,050,682
404,133
66,988
545,491
170,550
581,877
114,199
1,883,238
15,461,826
15,127,232
14,805,900
155,228
8,352
52,059
142,941
118,185
176,256
168,153
436,115
3,030
5,584,314
565,871
7,410,504
263,229
77,870
142,786
198,482
717,546
297,858
6,479
154,604
1,858,854
165,122
7,853
369,582
121,827
114,269
173,417
172,801
198,426
9,398
5,427,425
593,673
7,353,793
239,871
66,749
137,015
184,758
627,094
324,201
21,121
133,868
1,734,677
167,412
12,647
72,072
298,783
111,610
162,981
167,467
324,839
8,311
5,106,726
802,218
7,235,066
191,825
59,832
123,472
184,182
600,646
265,425
12,960
109,990
1,548,332
$ 9,269,358
$ 9,088,470
$ 8,783,398
Continued on next page...
277
STATE OF ALABAMA
CHANGES IN NET ASSETS (Continued from Previous Page)
For the Last Nine Fiscal Years Ended September 30
(Amounts in Thousands)
2010
2009
2008
2007
2006
Net (Expense)/Revenue
Governmental Activities
Business Activities
Total Primary Government
Net (Expense) Revenue
General Revenues and Other Changes in Net Assets
Governmental Activities
Sales and Use Taxes
Income Taxes
Motor Fuels Taxes
Utility Taxes
Insurance Premium Tax
Property Tax
Liquor Taxes
Tobacco and Cigarette Taxes
Grants and Contributions Not Restricted to Specific Programs
Investment Earnings
Miscellaneous
Contributions to Permanent Funds and Endowments
Transfers
Total Governmental Activities
Business-type Activities
Liquor Taxes
Grants and Contributions Not Restricted to Specific Programs
Investment Earnings
Miscellaneous
Contributions to Permanent Funds and Endowments
Special Items
Transfers
Total Business-type Activities
Total Primary Government
General Revenues and Other Charges
Change in Net Assets
Governmental Activities
Business-type Activities
Total Primary Government Changes in Net Assets
$ (7,555,117)
(422,302)
$ (7,846,579)
(759,770)
$ (8,949,563)
(431,734)
$ (8,468,922)
(316,534)
$ (6,726,644)
(174,668)
(7,977,419)
(8,606,349)
(9,381,297)
(8,785,456)
(6,901,312)
2,108,834
2,973,246
551,210
684,437
263,243
314,977
156,098
136,311
40,323
315,520
879,724
-
(335,150)
8,088,773
10,558
-
2,572
11,561
102
(9,147)
335,150
350,796
2,079,718
3,108,459
542,887
697,141
267,726
320,335
155,592
140,016
785
245,601
711,769
-
(357,623)
7,912,406
9,930
-
13,172
12,274
71
-
357,623
393,070
2,261,452
3,512,255
550,811
667,573
292,866
314,181
136,125
143,836
-
(141,251)
786,305
-
(444,314)
8,079,839
9,912
-
34,631
13,257
88
-
444,314
502,202
2,475,940
3,446,018
569,369
656,027
278,139
301,002
163,161
156,700
-
513,750
792,957
-
(379,209)
8,973,854
9,831
-
40,206
3,421
131
-
379,209
432,798
2,110,577
3,172,117
568,880
601,473
275,230
266,916
147,651
152,751
-
284,139
786,250
-
(321,020)
8,044,964
9,314
-
34,056
10,056
122
-
321,020
374,568
8,439,569
8,305,476
8,582,041
9,406,652
8,419,532
533,656
(71,506)
$ 462,150
65,827
(366,700)
$ (300,873)
(869,724)
70,468
$ (799,256)
504,932
116,264
$ 621,196
1,318,320
199,900
$ 1,518,220
278
2005
2004
2003
2002
(6,234,050)
2,086,071
2,938,046
534,696
556,211
274,698
251,960
137,244
157,715
6,159
236,191
688,857
2
(261,067)
7,606,783
$ (6,213,544)
(20,506)
1,393,239
278,814
$ 1,672,053
8,598
-
25,124
4,330
201
-
261,067
299,320
7,906,103
$ (5,974,742)
(217,726)
$ (5,722,757)
(316,005)
$ (5,687,596)
(334,906)
(6,192,468)
(6,038,762)
(6,022,502)
1,873,359
2,494,384
564,031
598,245
243,761
232,057
129,651
-
75,741
173,657
911,405
-
(229,114)
7,067,177
8,492
-
22,658
2,765
6
-
229,114
263,035
1,821,911
2,520,393
530,255
517,757
231,020
213,908
128,746
-
84,231
210,143
911,336
204
(226,788)
6,943,116
7,790
1,806
29,605
2,026
207
-
226,788
268,222
1,659,796
2,049,460
510,342
471,369
223,448
340,557
121,486
-
7,018
113,966
866,276
680
(216,423)
6,147,975
7,440
112,684
27,253
2,045
174
-
216,423
366,019
7,330,212
7,211,338
6,513,994
1,092,435
45,309
$ 1,137,744
1,220,359
(47,783)
$ 1,172,576
460,379
31,113
$ 491,492
279
STATE OF ALABAMA
FUND BALANCES OF GOVERNMENTAL FUNDS
For the Last Nine Fiscal Years Ended September 30
(Amounts in Thousands)
2010
2009
2008
2007
2006
General Fund
Reserved
Unreserved
Total General Fund
All Other Governmental Funds
Reserved
Unreserved, Designated for Capital Projects
Unreserved, Designated for Debt Service
Unreserved, Undesignated, Reported In:
Special Revenue Funds
Permanent Funds
Total All Other Governmental Funds
$ 5,474
77,405
82,879
$ 5,519
216,623
222,142
$ 5,303
376,391
381,694
$ 5,772
399,009
404,781
$ 3,314
401,393
404,707
3,450,427
153,318
806
3,163,363
83,481
1,085
3,191,402
185,790
4,630
3,498,507
441,221
5,449
3,165,956
275,528
4,866
1,358,522
24,374
$ 4,987,447
1,192,314
30,201
$ 4,470,444
1,351,620
24,938
$ 4,758,380
2,133,319
20,659
$ 6,099,155
2,607,528
16,173
$ 6,070,051
280
2005
$ 6,003
317,879
323,882
2,888,340
292,934
4,606
2,105,050
12,147
$ 5,303,077
2004
2003
2002
$ 4,228
232,501
236,729
$ 4,699
158,346
163,045
$ 4,087
147,941
152,028
2,667,067
381,579
8,208
2,528,464
465,437
8,979
2,452,710
498,935
9,249
1,480,649
4,538
$ 4,542,041
1,226,798
4,708
$ 4,234,386
733,488
2,123
$ 3,696,505
281
STATE OF ALABAMA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
For the Last Nine Fiscal Years Ended September 30
(Amounts in Thousands)
2010
2009
2008
2007
2006
Revenues
Taxes
Licenses, Permits, and Fees
Fines, Forfeits, and Court Settlements
Investment Income
Federal Grants and Reimbursements
Other Revenues
Total Revenues
Expenditures
Economic Development and Regulation
Education and Cultural Resources
Natural Resources and Recreation
Health
Social Services
Protection of Persons and Property
Transportation
General Government
Capital Outlay
Debt Service - Principal Retirement
Debt Service - Interest and Other Charges
Total Expenditures
Other Financing Sources (Uses)
Transfers In
Transfers Out
Bonds Issued
Refunding Bonds Issued
Other Debt Refunding Proceeds
Payments to Refunded Bond Escrow Agent
Current Refunding to Bondholders
Other Debt Refunding Uses
Capital Leases
Other Debt Issued
Other Debt Proceeds
Debt Issuance Premiums
Premiums on Debt
Discounts on Debt
Insurance Recovery Proceeds
Transfers Out
Payments to Refunded Bond Escrow Agent
Current Refunding to Bondholders
Insurance Recovery Proceeds
Total Other Financing Sources (Uses)
Net Increase (Decrease) for the Year
Debt Service as a Percentage
of Noncapital Expenditures
$ 8,074,508
664,963
150,366
313,159
9,306,121
1,198,260
19,707,377
$ 8,010,768
657,292
254,739
243,477
7,606,333
1,244,254
18,016,863
$ 8,646,397
647,535
254,179
(142,347)
6,697,069
1,523,910
17,626,743
$ 8,627,293
650,635
143,149
520,517
6,380,166
1,550,167
17,871,927
$ 8,126,310
608,770
136,901
300,993
6,643,162
1,379,482
17,195,618
204,464
6,427,782
183,387
6,129,642
2,350,328
1,114,794
1,560,242
1,054,077
42,525
50,493
52,672
19,170,406
1,247,478
-
110,000
112,030
-
-
-
-
2,322
62,136
-
20,746
-
-
3,465
(1,592,790)
(74,415)
(52,610)
-
(161,638)
226,554
6,388,357
164,682
5,535,484
1,969,621
1,085,493
1,577,388
959,411
92,995
56,388
47,655
18,104,028
1,391,457
(1,757,948)
-
-
-
-
-
-
9,504
-
-
-
-
-
-
-
-
-
2,395
(354,592)
214,211
7,166,373
194,725
5,299,205
1,717,523
1,025,662
1,556,330
987,450
272,032
71,213
61,514
18,566,238
1,841,818
(2,289,913)
10,000
22,660
-
-
(23,625)
-
171
-
-
1,210
-
-
-
-
-
-
4,579
(433,100)
201,026
6,575,887
133,234
5,362,737
1,693,797
982,932
1,522,329
934,355
168,402
68,616
48,336
17,691,651
1,520,089
(1,907,908)
305,000
-
-
-
-
-
11,738
-
-
9,333
-
-
-
-
-
-
3,024
(58,724)
185,916
5,722,732
171,825
4,813,599
1,625,180
1,011,393
1,512,116
840,293
56,835
81,727
40,319
16,061,935
1,460,110
(1,791,969)
61,150
-
-
-
-
-
1,989
-
-
1,085
-
-
-
-
-
-
7,725
(259,910)
375,333
(441,757)
(1,372,595)
121,552
873,773
0.55%
0.6%
0.73%
0.67%
0.76%
282
2005
2004
2003
2002
$ 7,566,234
562,461
149,040
227,980
6,216,771
1,309,343
16,031,829
185,558
5,198,444
120,188
4,639,203
1,610,677
1,005,967
1,399,903
726,704
66,823
78,195
37,201
15,068,863
1,254,049
(1,527,416)
103,920
57,975
-
(27,949)
-
-
659
-
-
-
5,242
(580)
-
-
-
-
-
(134,100)
828,866
0.77%
$ 6,794,734
532,118
142,831
183,922
5,675,945
1,347,930
14,677,480
$ 6,535,274
502,493
182,762
204,596
5,515,520
1,511,073
14,451,718
$ 5,914,363
497,191
156,161
100,127
5,321,974
1,335,183
13,324,999
60,763
4,818,434
120,095
4,527,847
1,496,323
730,780
1,354,816
680,002
55,833
73,650
38,282
13,956,825
993,669
(1,239,110)
-
-
600
-
-
(600)
1,152
-
-
-
-
-
-
-
-
-
-
(244,289)
65,914
4,764,303
108,638
4,354,296
1,510,823
680,605
1,277,739
679,532
48,636
81,963
40,125
13,612,574
1,004,619
(1,239,551)
4,305
17,553
-
-
(17,162)
-
618
-
3,634
-
-
-
-
-
-
-
-
(225,984)
67,862
4,583,729
96,462
4,290,436
1,411,889
610,113
1,419,426
646,599
38,983
63,716
86,902
13,316,117
712,776
(917,652)
345,708
-
-
-
-
-
2,048
-
4,696
-
-
-
-
-
-
-
-
147,576
476,366
613,160
156,458
0.81%
0.9%
1.13%
283
STATE OF ALABAMA
REVENUE CAPACITY
Major Revenue Base: Personal Income by Industry
Last Ten Years
(Amounts in Thousands)
Industry
Mining
Utilities
Construction
Manufacturing
Wholesale Trade
Retail Trade
Transportation and warehousing
Finance and insurance
Professional and technical services
Government and government enterprises
All other
Total Personal Income
State Income Taxes
Average Effective Rate*
$
2009
1,113,520
1,521,832
5,955,872
15,348,846
5,168,987
7,180,993
3,292,495
5,463,089
9,353,256
24,835,422
77,850,326
$
2008
1,207,226
1,532,185
7,142,973
16,886,871
5,607,467
7,513,329
3,541,010
5,569,285
9,251,168
23,989,465
76,327,301
$
2007
888,973
1,505,084
7,561,603
16,802,906
5,544,499
7,839,744
3,530,194
5,469,195
8,401,970
22,758,206
71,563,426
2006
$
927,201
1,461,577
7,430,022
16,691,485
5,271,910
7,677,074
3,503,655
5,381,623
7,927,651
21,209,975
66,980,434
$
2005
819,878
1,379,863
6,856,163
15,768,861
4,919,964
7,444,056
3,298,282
4,905,734
7,231,733
20,011,959
62,999,800
$
157,084,638
$
158,568,280
$
151,865,800
$
144,462,607
$
135,636,293
$
2,699,218
$
3,035,142
$
3,018,748
$
2,842,894
$
2,564,510
1.72%
1.91%
1.99%
1.97%
1.89%
Source: Bureau of Economic Analysis, U.S. Department of Commerce
*Note: The average rate for personal income equals state income taxes divided by total personal income.
Year 2009 is the most recent year data is available.
284
STATE OF ALABAMA
2004
2003
2002
2001
2000
$
704,622
1,434,165
6,399,496
15,078,104
4,589,285
7,102,701
3,054,182
4,513,950
6,932,098
18,892,332
59,318,578
$
620,247
1,373,643
5,943,943
14,636,176
4,234,540
6,853,885
2,792,150
4,270,540
6,463,965
17,872,867
54,999,511
$
631,854
1,289,212
5,800,633
14,262,807
4,161,318
6,547,809
2,712,539
3,992,781
5,983,788
16,912,555
53,118,688
$
603,891
1,265,693
5,848,027
14,296,560
4,039,512
6,276,564
2,728,910
3,718,181
5,772,977
15,968,397
51,494,121
$
670,384
1,106,190
5,556,246
14,334,955
3,910,306
5,988,922
2,703,186
3,398,283
5,244,429
15,306,618
48,931,327
$
128,019,513
$
120,061,467
$
115,413,984
$
112,012,833
$
107,150,846
$
2,256,483
$
2,073,207
$
2,067,338
$
2,099,772
$
2,066,789
1.76%
1.73%
1.79%
1.87%
1.93%
285
STATE OF ALABAMA
REVENUE CAPACITY
Revenue Rates: Individual and Corporate Income Tax Rates
Last Ten Calendar Years
Filing Status
Taxable Net Income Level
2000 - 2006
Rate
Single, Head of family, Married filing
separate
Not Over $500
Over $500 But Not Over $3,000
Over $3,000
Married filing Jointly
Not over $1,000
Over $1,000 But Not Over $6,000
Over $6,000
Filing Status
Taxable Net Income Level
Single
Not Over $500
Over $500 But Not Over $3,000
Over $3,000
Head of Family
Not Over $500
Over $500 But Not Over $3,000
Over $3,000
Married filing Separate
Not Over $500
Over $500 But Not Over $3,000
Over $3,000
Married filing Jointly
Not over $1,000
Over $1,000 But Not Over $6,000
Over $6,000
Adjusted Gross Income of $1,875 or more
2%
4%
5%
Adjusted Gross Income of $3,750 or more
2%
4%
5%
2007-2009
Rate
Adjusted Gross Income of $4,000 or more
2%
4%
5%
Adjusted Gross Income of $7,700 or more
2%
4%
5%
Adjusted Gross Income of $5,250 or more
2%
4%
5%
Adjusted Gross Income of $10,500 or more
2%
4%
5%
Corporate Income Tax Rates
2000
5%
2001 - 2009
6.5%
Source: Alabama Department of Revenue
286
STATE OF ALABAMA
REVENUE CAPACITY
Principal Revenue Payers: Individual Income Tax Filers and Liability by Taxable Income
Last Four Years
For Tax Year 2008
Adjusted Gross Income Level
Filers
Number of
Percentage
of Total
Total Income
(In Thousands)
Percentage
of Total
Tax Liability
(In Thousands)
514,586
377,749
301,812
253,458
146,330
265,237
1,859,172
28%
20%
16%
14%
8%
14%
100%
$
582,000
3,544,000
5,762,000
7,658,000
6,389,000
28,258,000
52,193,000
$
1%
7%
11%
15%
12%
54%
100%
$
22,000
161,000
269,000
359,000
300,000
1,344,000
2,455,000
$
Percentage
of Total
1%
6%
11%
15%
12%
55%
100%
LESS THAN 12,000
12,001- 24,000
24,001- 39,000
39,001- 60,000
60,001- 80,000
OVER 80,000
TOTAL
For Tax Year 2007
Adjusted Gross Income Level
LESS THAN 12,000
12,001- 24,000
24,001- 39,000
39,001- 60,000
60,001- 80,000
OVER 80,000
TOTAL
For Tax Year 2006
Adjusted Gross Income Level
Less Than 10,000
10,001- 20,000
20,001- 40,000
40,001- 60,000
60,001- 80,000
Over 80,000
TOTAL
For Tax Year 2005
Adjusted Gross Income Level
Less Than 10,000
10,001- 20,000
20,001- 40,000
40,001- 60,000
60,001- 80,000
Over 80,000
TOTAL
Number of
Filers
Percentage
of Total
Total Income
(In Thousands)
Percentage
of Total
Tax Liability
(In Thousands)
Percentage
of Total
526,003
416,646
330,490
268,594
151,822
272,191
1,965,746
27%
21%
17%
14%
8%
13%
100%
$
500,255
2,166,023
5,409,918
7,771,910
6,498,782
33,444,956
55,791,844
$
1%
4%
10%
14%
12%
59%
100%
$
25,258
159,353
289,406
387,854
320,206
1,576,154
2,758,231
$
1%
6%
10%
14%
12%
57%
100%
Number of
Filers
Percentage
of Total
Total Income
(In Thousands)
Percentage
of Total
Tax Liability
(In Thousands)
Percentage
of Total
372,455
326,257
408,237
216,114
130,007
211,074
1,664,144
22%
20%
24%
13%
8%
13%
100%
$
1,824,101
4,812,957
11,726,591
8,633,188
5,016,392
23,384,310
55,397,539
$
3%
9%
21%
16%
9%
42%
100%
$
22,525
107,094
273,349
230,940
192,987
680,800
1,507,695
$
2%
7%
18%
15%
13%
45%
100%
Number of
Filers
Percentage
of Total
Total Income
(In Thousands)
Percentage
of Total
Tax Liability
(In Thousands)
Percentage
of Total
382,264
325,968
396,010
206,285
125,030
185,030
1,620,587
24%
20%
24%
13%
8%
11%
100%
$
1,846,134
4,795,552
11,383,672
10,121,727
8,670,249
28,459,458
65,276,792
$
3%
7%
17%
16%
13%
44%
100%
$
23,678
114,997
328,108
302,402
267,624
895,822
1,932,631
$
1%
6%
17%
16%
14%
46%
100%
Note: Due to legal confidentiality issues, the names of the ten largest individual income tax payers are not available. The categories presented are
intended to provide alternative information regarding the sources of the State’s income tax revenue.
Source: Alabama Department of Revenue
Year 2008 is the most recent data available.
287
83%
5%
7%
2%
3%
100%
Percentage
of Total
2%
1%
7%
4%
86%
100%
Percentage
of Total
1%
1%
5%
4%
89%
100%
Number of
Filers
Percentage
of Total
Number of
Filers
Percentage
of Total
18,919
1,209
1,574
403
754
22,859
20,384
1,400
1,805
467
784
24,840
Taxable Income
(In Thousands)
$94,865
86,045
358,665
278,934
6,810,526
$7,629,035
Taxable Income
(In Thousands)
$104,788
98,119
413,149
330,282
7,557,012
$8,503,350
Tax Liability
(In Thousands)
$6,978
5,466
25,347
16,654
338,165
$392,610
STATE OF ALABAMA
REVENUE CAPACITY
Principal Revenue Payers: Corporate Income Tax Filers and Liability by Taxable Income
Last Four Years
For Tax Year 2008
Alabama Taxable Income
50,000 and lower
50,001 - 100,000
100,001 - 500,000
500,001 - 1,000,000
1,000,001 and higher
Total
For Tax Year 2007
Alabama Taxable Income
50,000 and lower
50,001 - 100,000
100,001 - 500,000
500,001 - 1,000,000
1,000,001 and higher
Total
For Tax Year 2006
Alabama Taxable Income
50,000 and lower
50,001 - 100,000
100,001 - 500,000
500,001 - 1,000,000
1,000,001 and higher
Total
For Tax Year 2005
Alabama Taxable Income
50,000 and lower
50,001 - 100,000
100,001 - 500,000
500,001 - 1,000,000
1,000,001 and higher
Total
Note: Due to legal confidentiality issues, the names of the ten largest corporate income tax payers are not available. The categories presented are
intended to provide alternative information regarding the sources of the State’s income tax revenue.
Source: Alabama Department of Revenue
Tax Liability
(In Thousands)
$6,815
6,378
26,855
21,468
491,206
$552,722
Tax Liability
(In Thousands)
$6,141
5,209
20,079
16,642
339,126
$387,197
Tax Liability
(In Thousands)
$7,355
6,487
25,872
21,311
469,768
$530,793
Taxable Income
(In Thousands)
$94,487
82,080
306,367
257,795
5,224,215
$5,964,944
Taxable Income
(In Thousands)
$110,469
99,716
397,866
328,316
7,229,243
$8,165,610
28,371
1,166
1,392
362
545
31,836
20,673
1,421
1,735
458
767
25,054
1%
1%
5%
4%
89%
100%
Number of
Filers
Percentage
of Total
Number of
Filers
Percentage
of Total
82%
6%
7%
2%
3%
100%
83%
5%
7%
2%
3%
100%
2%
1%
5%
4%
88%
100%
1%
1%
5%
4%
89%
100%
1%
1%
5%
4%
89%
100%
2%
1%
5%
4%
88%
100%
Percentage
of Total
1%
1%
5%
4%
89%
100%
Percentage
of Total
Percentage
of Total
Percentage
of Total
Year 2008 is the most recent data available.
89%
4%
4%
1%
2%
100%
Percentage
of Total
Percentage
of Total
288
STATE OF ALABAMA
289
STATE OF ALABAMA
DEBT CAPACITY
Ratios of Outstanding Debt
Last Nine Fiscal Years
(Amounts in Thousands, Except Per Capita Amount)
2010
2009
2008
2007
2006
Primary Government
Governmental Activities:
General Obligation Bonds
Revenue Bonds
Capital Leases/Notes/Mortgages
Total Governmental Activities
$
769,330
274,283
117,115
1,160,728
$
687,336
298,712
43,549
1,029,597
$
721,145
323,483
41,934
1,086,562
$
773,253
333,438
42,352
1,149,043
$
516,973
355,698
25,643
898,314
Business-type Activities:
Revenue Bonds
Capital Leases/Notes/Mortgages
Total Business-Type Activities
638,109
11,688
649,797
619,360
14,275
633,635
612,959
16,224
629,183
572,782
20,877
593,659
394,044
39,228
433,272
Total Primary Government
$
1,810,525
$
1,663,232
$
1,715,745
$
1,742,702
$
1,331,586
Debt as a percentage
of Personal Income †
1.15%
1.06%
1.08%
1.15%
0.92%
Amount of Debt per Capita †
$
385
$
353
$
367
$
376
$
290
Notes: Details regarding the state's outstanding debt can be found in the note 4 of the financial statements.
Fiscal year 2010 personal income and population data are estimated.
All years presented with revised population and personal income data.
† See the Schedule of Demographic and Economic Statistics on page 297 for personal income and population data.
290
STATE OF ALABAMA
2005
2004
2003
2002
$
507,503
351,139
32,100
890,742
$
445,211
347,429
38,370
831,010
$
490,085
369,327
42,316
901,728
$
535,080
386,891
33,059
955,030
411,633
33,986
445,619
337,291
17,918
355,209
308,061
14,948
323,009
299,508
12,346
311,854
$
1,336,361
$
1,186,219
$
1,224,737
$
1,266,884
0.99%
0.93%
1.02%
1.10%
$
294
$
263
$
273
$
283
291
STATE OF ALABAMA
DEBT CAPACITY
Ratios of General Bonded Debt Outstanding
Last Nine Fiscal Years
(Amounts in Thousands, Except Per Capita Amount)
Primary Government
Fiscal
Year
2010
2009
2008
2007
2006
2005
2004
2003
2002
General
Obligation
Bonds Payable
$
769,330
687,336
721,145
773,253
516,973
507,503
445,211
490,085
535,079
Revenue
Bonds
$
912,392
918,072
936,442
906,220
749,742
762,772
684,720
677,388
686,398
Less: Amounts
Available in Debt
Service Fund
$
47,562
40,925
42,914
29,930
25,945
25,008
28,844
30,016
42,483
Total
1,634,160
1,564,483
1,614,673
1,649,543
1,240,770
1,245,267
1,101,087
1,137,457
1,178,994
$
Percentage of
Personal Income †
1.04%
1.00%
1.02%
1.09%
0.86%
0.92%
0.86%
0.95%
1.02%
Component Units (Only includes issues that the State has pledged revenue for principal payment)
Fiscal
Year
2010
2009
2008
2007
2006
2005
2004
2003
2002
Revenue
Bonds
2,768,732
2,534,100
2,621,615
1,620,570
1,734,825
1,822,135
1,832,695
1,844,164
1,886,421
$
Less: Amounts
Available in Debt
Service Fund
$
109,337
46,175
99,039
113,650
72,209
111,376
112,896
103,307
91,252
Total
2,659,395
2,487,925
2,522,576
1,506,920
1,662,616
1,710,759
1,719,799
1,740,857
1,795,169
$
Percentage of
Personal Income †
1.69%
1.58%
1.59%
0.99%
1.15%
1.26%
1.34%
1.45%
1.56%
Per
Capita †
$
347
332
345
356
270
274
244
253
264
Per
Capita †
$
565
528
539
325
362
376
381
388
401
Note: Details regarding the state's outstanding debt can be found in the note 4 of the financial statements.
† See the Schedule of Demographic and Economic Statistics on page 297 for personal income and population data.
Fiscal year 2010 personal income and population data are estimated.
All years presented with revised population and personal income data.
Debt Limitations
The Constitution of Alabama of 1901 prohibits the issuance of debt by the State. The State does issue revenue
bonds which are limited obligations of public corporations governed by state officials.
292
STATE OF ALABAMA
293
STATE OF ALABAMA
DEBT CAPACITY
Pledged Revenue Coverage
Last Seven Fiscal Years
(Amounts in Thousands)
Primary Government - Revenue Bonds
State Port Authority
Revenue-Charges for facilities usage
Debt Service
Principal
Interest
Coverage ¹
Alabama College System
Revenue-Tuition and Fees
Debt Service
Principal
Interest
Coverage ¹
Federal Highway Finance Authority
Revenue-Federal Revenue
Debt Service
Principal
Interest
Coverage ¹
Component Units-Revenue Bonds
Alabama Incentives Financing Authority
Tennessee Valley Exhibit Commission
Revenue-Tennessee Valley Electric Payment
Debt Service
Principal
Interest
Coverage ¹
Public School and College Authority
Revenue-General Sales Tax, Utility Tax, Use Tax
Debt Service
Principal
Interest
Coverage ¹
2010
2009
2008
2007
2006
2005
2004
106,460
103,420
125,070
109,735
88,155
87,022
77,871
7,165
12,361
5.45
6,830
14,656
4.81
7,250
13,428
6.05
6,260
9,770
6.85
5,910
10,124
5.50
5,575
10,459
5.43
5,280
10,749
4.86
267,009
206,769
186,429
184,664
137,133
185,013
101,333
14,955
11,393
10.13
14,150
12,198
7.85
14,311
12,027
7.08
12,970
9,448
8.24
12,045
9,968
6.23
9,112
6,521
11.83
7,527
5,589
7.73
979,460
726,063
831,530
748,952
790,928
648,831
548,830
13,010
5,890
51.82
12,450
6,527
38.26
11,920
7,136
43.64
11,415
7,669
39.25
10,910
8,123
41.56
10,430
8,550
34.18
9,970
8,983
28.96
20,851
20,813
19,313
18,328
18,592
17,462
16,169
140
6,638
3.08
1,760
5,982
2.69
2,630
6,202
2.19
2,480
7,473
1.84
2,340
7,920
1.81
2,205
7,508
1.80
2,095
7,001
1.78
2,328,626
2,307,959
2,514,550
2,482,747
2,374,944
2,162,285
2,048,794
71,235
132,698
11.42
130,720
116,126
9.35
91,215
93,359
13.62
87,765
72,688
15.47
110,240
76,720
12.70
72,640
78,218
14.33
68,290
77,371
14.07
294
STATE OF ALABAMA
State Industrial Development Authority
Revenue-Cigarette Tax
Debt Service
Principal
Interest
Coverage ¹
Mental Health Financing Authority
Revenue-Cigarette Tax
Debt Service
Principal
Interest
Coverage ¹
Alabama Revolving Fund Authority
Revenue-Mobile Telecommunications Tax
Debt Service
Principal
Interest
Coverage ¹
Alabama Twenty-first Century Authority
Revenue-Tobacco Settlement
Debt Service
Principal
Interest
Coverage ¹
2010
2009
2008
2007
2006
2005
2004
4,654
4,773
4,921
5,121
5,247
5,197
3,141
1,900
112
2.31
3,100
258
1.42
3,315
343
1.35
3,115
508
1.41
3,050
647
1.42
3,050
776
1.36
3,050
927
0.79
6,205
6,364
6,562
6,828
6,996
6,929
4,188
1,190
270
4.25
4,710
505
1.22
4,775
745
1.19
4,490
969
1.25
4,420
1,145
1.26
5,590
2,544
0.85
5,400
2,302
0.54
105,919
108,781
101,287
101,057
90,919
84,892
75,895
515
702
87.03
475
743
89.31
440
780
83.02
405
815
82.83
370
847
74.71
345
876
69.53
315
903
62.31
13,000
13,000
13,000
13,000
13,000
13,000
13,000
5,910
6,659
1.03
5,625
6,958
1.03
5,360
7,241
1.03
5,100
7,513
1.03
4,855
7,773
1.03
4,660
8,022
1.03
4,490
8,262
1.02
Details regarding the state's outstanding bonds can be found in Note 4 of the financial statements.
¹ Coverage equals revenue divided by debt service.
295
STATE OF ALABAMA
DEMOGRAPHIC AND ECONOMIC INFORMATION
Labor Force Statistics
Last Ten Years
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Labor Force
2,134,845
2,107,858
2,104,209
2,113,781
2,133,177
2,173,817
2,184,074
2,169,967
2,170,887
2,127,211
Employment
2,034,909
1,994,748
1,989,784
2,007,153
2,051,893
2,098,462
2,108,873
2,061,601
1,959,849
1,925,064
Unemployment
99,936
113,110
114,425
106,628
81,284
75,355
75,201
108,366
211,038
202,147
Civilian Labor Force Trend with Unemployment Rates
Unemployment Rate
4.7%
5.4%
5.4%
5.0%
3.8%
3.5%
3.4%
5.0%
9.7%
9.5%
Labor Force
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
Unemployment Rate
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Labor Force
Unemployment
Unemployment Rate
Note: Data were not seasonally adjusted.
2006-2010 data reflects revised population controls and model reestimation with the Bureau of Labor Statistics.
Sources: Local Area Unemployment Statistics, Bureau of Labor Statistics, U. S. Department of Labor
296
STATE OF ALABAMA
DEMOGRAPHIC AND ECONOMIC INFORMATION
Population/Per Capita Personal Income Statistics
Last Ten Years
Population
Per Capita Personal Income
United States
282,171,957
285,081,556
287,803,914
290,326,418
293,045,739
295,753,151
298,593,212
301,579,895
304,374,846
307,006,550
Alabama
4,451,849
4,464,034
4,472,420
4,490,591
4,512,190
4,545,049
4,597,688
4,637,904
4,677,464
4,708,708
United States
30,318
31,145
31,461
32,271
33,881
35,424
37,698
39,458
40,673
39,626
Alabama
24,069
25,092
25,806
26,736
28,372
29,843
31,421
32,744
33,900
33,360
Personal income (in Thousands)
United States
Alabama
107,150,846
8,554,866,000
112,012,833
8,878,830,000
115,413,984
9,054,702,000
9,369,072,000
120,061,467
128,019,513
9,928,790,000
135,636,293
10,476,669,000
11,256,516,000
144,462,607
151,865,800
11,899,853,000
158,568,280
12,379,745,000
12,165,474,000
157,084,638
Per Capita Income
Alabama Compared to United States
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
United States
Alabama
Each year’s data is updated by the U.S. Department of Commerce.
Note: Year 2009 is the most recent year for which data are available.
Sources: Regional Economic Information System, Bureau of Economic Analysis, U.S. Department of Commerce
297
STATE OF ALABAMA
DEMOGRAPHIC AND ECONOMIC INFORMATION
Top Ten Employers in Alabama
Last Ten Years
Employer
Employment
Range
30,000-39,999
Wal Mart Associates Inc
20,000-29,999
Army
5,000-9,999
Mobile Education Board
5,000-9,999
University Of Alabama In Birmingham
5,000-9,999
Alabama Power Co Electric
Univ. Of Alabama In Birmingham Medical Center 5,000-9,999
5,000-9,999
U S Postal Service
5,000-9,999
Regions Bank
Pilgrims Pride Corporation
5,000-9,999
5,000-9,999
Huntsville Hospital
95,000-159,990
Employment
Range
Employer
30,000-39,999
Wal Mart Associates Inc
20,000-29,999
Army
10,000-19,999
Mobile Education Board
5,000-9,999
University Of Alabama In Birmingham
Alabama Power Co Electric
5,000-9,999
Univ. Of Alabama In Birmingham Medical Center 5,000-9,999
U S Postal Service
5,000-9,999
Winn Dixie Montgomery
Regions Bank
Pilgrims Pride Corporation
Huntville Hospital
-
5,000-9,999
5,000-9,999
5,000-9,999
95,000-159,990
2010
Rank
1
2
4
6
7
8
3
5
9
10
2008
Rank
1
2
3
6
7
9
4
-
5
8
10
% of
Total State
Employment
1.94%
1.39%
0.42%
0.42%
0.42%
0.42%
0.42%
0.42%
0.42%
0.42%
6.69%
% of
Total State
Employment
1.80%
1.28%
0.77%
0.39%
0.39%
0.39%
0.39%
-
0.39%
0.39%
0.39%
6.58%
2009
Rank
1
2
4
6
7
8
3
5
9
10
2007
Rank
1
2
4
6
9
8
3
10
5
7
-
Employment
Range
30,000-39,999
20,000-29,999
5,000-9,999
5,000-9,999
5,000-9,999
5,000-9,999
5,000-9,999
5,000-9,999
5,000-9,999
5,000-9,999
95,000-159,990
Employment
Range
30,000-39,999
20,000-29,999
10,000-19,999
5,000-9,999
5,000-9,999
5,000-9,999
10,000-19,999
5,000-9,999
5,000-9,999
5,000-9,999
-
100,000-169,990
% of
Total State
Employment
1.90%
1.36%
0.41%
0.41%
0.41%
0.41%
0.41%
0.41%
0.41%
0.41%
6.54%
% of
Total State
Employment
1.79%
1.28%
0.77%
0.38%
0.38%
0.38%
0.77%
0.38%
0.38%
0.38%
-
6.89%
Note: All figures are based on March of each year. Percentage of Total State Employment is based on the midpoints in the ranges given.
State of Alabama is excluded.
Source: Alabama Department of Industrial Relations - Labor Market Information Division
298
STATE OF ALABAMA
-
2006
% of
2005
% of
2004
% of
Employer
Employment
Range
Total State
Rank Employment
Employment
Range
Total State
Rank Employment
Employment
Range
Total State
Rank Employment
30,000-39,999
Wal Mart Associates Inc
20,000-29,999
Army
Mobile Education Board
5,000-9,999
University Of Alabama In Birmingham 5,000-9,999
Alabama Power Co Electric
5,000-9,999
5,000-9,999
U. Of Ala In Bham Medical Center
5,000-9,999
U S Postal Service
5,000-9,999
Gold Kist Inc
Winn Dixie Montgomery
5,000-9,999
Regions Bank
5,000-9,999
Brunos Supermarkets Inc
-
1
2
3
4
5
6
7
8
9
10
1.82%
1.30%
0.39%
0.39%
0.39%
0.39%
0.39%
0.39%
0.39%
0.39%
-
30,000-39,999
20,000-29,999
5,000-9,999
5,000-9,999
5,000-9,999
5,000-9,999
5,000-9,999
5,000-9,999
5,000-9,999
-
5,000-9,999
1
2
3
4
7
8
9
10
6
-
5
1.87%
1.33%
0.40%
0.40%
0.40%
0.40%
0.40%
0.40%
0.40%
-
0.40%
30,000-39,999
20,000-29,999
5,000-9,999
5,000-9,999
5,000-9,999
5,000-9,999
5,000-9,999
5,000-9,999
5,000-9,999
-
5,000-9,999
1
2
3
5
6
9
8
10
7
-
4
90,000-149,990
6.24%
90,000-149,990
6.40%
90,000-149,990
1.91%
1.36%
0.41%
0.41%
0.41%
0.41%
0.41%
0.41%
0.41%
-
0.41%
6.54%
Employer
2003
Employment
Range
Rank
% of
Total State
Employment
2002
% of
2001
% of
Employment
Range
Total State
Rank Employment
Employment
Range
Total State
Rank Employment
1.34%
0.94%
0.40%
0.40%
0.40%
-
0.40%
-
0.40%
0.40%
0.40%
0.40%
5.51%
30,000-39,999
Wal Mart Associates Inc
15,000-19,999
Army
Mobile Education Board
5,000-9,999
University Of Alabama In Birmingham 5,000-9,999
5,000-9,999
Alabama Power Co Electric
U. Of Ala In Bham Medical Center
5,000-9,999
U S Postal Service
5,000-9,999
Gold Kist Inc
Winn Dixie Montgomery
Brunos Supermarkets Inc
BellSouth Telecommunications
Russell Corporation
5,000-9,999
5,000-9,999
5,000-9,999
-
-
1
2
3
5
7
10
8
-
6
4
9
-
1.92%
0.96%
0.41%
0.41%
0.41%
0.41%
0.41%
-
0.41%
0.41%
0.41%
-
20,000-29,999
15,000-19,999
5,000-9,999
5,000-9,999
5,000-9,999
-
5,000-9,999
5,000-9,999
5,000-9,999
5,000-9,999
5,000-9,999
-
1
2
4
6
9
-
8
10
5
3
7
-
1.37%
0.96%
0.41%
0.41%
0.41%
-
0.41%
0.41%
0.41%
0.41%
0.41%
-
20,000-29,999
15,000-19,999
5,000-9,999
5,000-9,999
5,000-9,999
-
5,000-9,999
-
5,000-9,999
5,000-9,999
5,000-9,999
5,000-9,999
1
2
5
6
9
-
8
-
3
4
7
10
85,000-139,990
6.18%
75,000-129,990
5.63%
75,000-129,990
Note: All figures are based on March of each year. Percentage of Total State Employment is based on the midpoints in the ranges given.
State of Alabama is excluded.
Source: Alabama Department of Industrial Relations - Labor Market Information Division
299
STATE OF ALABAMA
OPERATING INFORMATION
State Government Employment by Function
Last Nine Years
Primary Government
Governmental Activities:
Economic Development and Regulation
Education and Cultural Resources
Natural Resources and Recreation
Health
Social Services
Protection of Person and Property
Transportation
General Government
Total Governmental Activities
Business-type Activities:
Alcoholic Beverage Control Board
State Port Authority
Alabama College System
Total Business-Type Activities
2010
2009
2008
2007
2006
802
1,254
1,451
5,626
6,108
8,521
5,363
4,587
33,712
881
1,200
1,454
5,513
5,966
8,445
5,301
4,686
33,446
881
1,226
1,608
5,644
5,968
8,317
5,368
4,731
33,743
882
1,210
1,378
5,493
6,163
8,057
5,263
4,458
32,904
836
1,117
1,460
5,167
6,277
7,842
5,169
4,173
32,041
902
185
1,950
3,037
901
193
1,937
3,031
898
200
1,916
3,014
895
184
1,885
2,964
851
165
1,792
2,808
Total Primary Government
36,749
36,477
36,757
35,868
34,849
Note: Includes State Merit System, House, Senate, and Administrative Office of the Courts.
Sources: Alabama Personnel Department
Alabama Commission on Higher Education
Alabama Administrative Office of the Courts
Alabama House of Representatives
300
STATE OF ALABAMA
2005
2004
2003
2002
824
1,104
1,383
4,890
6,313
7,733
5,138
4,124
31,509
835
1,086
1,486
4,818
6,323
7,590
5,013
4,166
31,317
893
1,092
1,575
5,081
6,488
7,583
4,981
4,482
32,175
899
1,111
1,622
4,931
6,768
7,395
4,688
4,495
31,909
778
150
1,766
2,694
753
142
1,796
2,691
746
119
1,750
2,615
760
119
1,702
2,581
34,203
34,008
34,790
34,490
301
STATE OF ALABAMA
OPERATING INFORMATION
Indicators of Demand or Level of Service
Last Five Fiscal Years
Economic Development and Regulation
Forestry Commission
Number of fires
Average acres burned
Agriculture and Industries
Pounds of meat and poultry processed under inspection
Educational and Cultural Resources
Education Department
Teacher certificates issued
Number of local schools supported
Number of children served
Natural Resources and Recreation
Conservation and Natural Resources
Number of guests to outdoor recreational sites
Acres of land managed
Number of registered boats
Health - Physical and Mental
Public Health
Vital records issued
Medicaid
Citizens enrolled monthly
Claims processed monthly
Social Services
Industrial Relations
Employment Security claims
Human Resources
Number of visits to licensed child care centers
Child support caseload
Households receiving food assistance
Number of child abuse/neglect assessments
Protection of Persons and Property
Department of Corrections
Number of inmates
Public Safety
Arrest tickets issued
Accidents investigated
Pardons and Paroles
Number of board hearings
Number of offenders supervised
Forensic Sciences
Number of death cases investigated
Transportation
Transportation Department
Roadway miles
Bridges
General Government
Administrative Office of Courts
Caseload
Revenue Department
Number of payments received
2010
2009
2008
2007
2006
2,314
11
2,094
11
2,450
10
4,591
16
4,932
15
111,056,537
97,868,453
105,603,617
88,835,448
88,823,389
n/a
1,520
739,198
n/a
1,376
739,197
n/a
1,550
744,000
48,840
n/a
n/a
52,024
n/a
n/a
3,758,217
210,834
248,514
3,366,161
198,802
271,206
3,082,009
197,451
273,406
3,031,646
10,946
273,987
2,961,506
8,298
243,483
432,547
479,904
517,723
584,475
501,984
878,232
2,848,694
821,602
2,700,907
765,616
2,180,736
732,970
4,819,280
n/a
4,419,711
359,287
506,603
285,075
237,697
237,389
3,254
229,000
344,788
n/a
3,435
229,635
280,625
n/a
4,060
228,479
231,470
29,301
3,650
228,019
226,855
28,566
2,946
229,078
209,316
27,216
25,390
25,854
25,303
27,062
24,159
533,220
30,520
10,284
71,578
568,505
30,904
12,954
67,579
538,910
33,115
407,289
31,939
12,158
66,196
11,546
58,862
324,627
36,147
13,375
49,269
2,403
2,512
4,098
3,607
3,756
10,876
5,374
10,877
5,368
10,875
5,362
11,235
5,683
10,846
5,328
2,589,067
2,611,460
2,589,796
2,353,372
2,041,982
3,318,271
3,296,454
3,304,603
n/a
n/a
302
STATE OF ALABAMA
OPERATING INFORMATION
Indicators of Volume, Usage, and Nature of Capital Assets
Last Seven Fiscal Years
(Amounts in Thousands)
Economic Development and Regulation
Forestry Commission
Buildings
Vehicles
Heavy Equipment
Educational and Cultural Resources
Education Television
Buildings
Natural Resources and Recreation
Conservation and Natural Resources
Buildings
Vehicles
Heavy Equipment
Health
Environmental Management
Vehicles
Social Services
Human Resources
Buildings
Protection of Persons and Property
Agriculture and Industries
Vehicles
Corrections
Buildings
Vehicles
Military
Buildings
Public Safety
Vehicles
Youth Services
Buildings
Vehicles
Pardons and Paroles
Vehicles
Transportation
Transportation
Buildings
Vehicles
Heavy Equipment
General Government
Administrative Office of Courts
Vehicles
Revenue Department
Vehicles
2010
2009
2008
2007
2006
2005
2004
160
379
654
159
380
657
142
371
671
142
397
690
142
326
682
142
322
741
142
307
715
26
26
24
24
24
24
24
678
760
214
668
778
211
659
774
207
631
759
211
611
689
212
609
672
210
604
645
213
183
163
178
189
196
192
172
31
30
31
30
30
30
30
246
249
234
233
236
222
186
370
446
370
421
362
446
362
448
362
404
362
332
345
332
665
669
680
642
688
688
688
1,353
1,275
1,375
1,357
1,159
1,287
1,062
115
106
118
103
119
101
118
96
118
89
118
82
118
74
321
322
305
262
252
248
211
510
2,039
1,093
510
2,062
1,061
501
2,343
1,146
473
2,379
1,127
472
2,356
1,130
472
2,389
1,184
471
2,241
1,138
23
22
20
17
7
7
7
29
26
27
27
27
37
24
303
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